This post was originally published on Fin Extra
In what ways has the US set the pace for cryptocurrency legislation? Why were stablecoins the first type of digital currency to be regulated? What insights can be gained from the fact that stablecoin transaction volumes surpassed that of Visa and Mastercard combined in 2024, but fewer than 10 major economies around the world have adopted stablecoin-specific legislation? What progress has the European Union’s Markets in Crypto-Assets Regulation (MiCA) and Hong Kong’s Stablecoin Ordinance made? Can its success be measured? How can stablecoin sales result in collapsing Treasury prices, increasing interest rates increasing, and destablising financial markets and economies? What potential is there for cross-border collaboration and information sharing, transparent disclosures of reserve composition, redemption rights and associated risks, and compliance with global AML/CFT measures?
Stablecoins are rapidly becoming a cornerstone of digital finance, and the US is leading the way. With bipartisan momentum behind the GENIUS Act and related legislation, the US government is establishing a federal framework that could reshape the global stablecoin market. It is evident that US policy leadership is influencing financial dynamics and how other jurisdictions are responding to the rise of dollar-backed digital assets.
Considering the competitive advantages built into the
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