Global Stablecoin Race Intensifies After US GENIUS Act
The US passed the GENIUS Act in July, triggering a global push toward stablecoin regulation and digital payments. China plans a pilot for yuan-backed stablecoins in Hong Kong and Shanghai to curb USDT black markets, compete with US innovation, and support alternative payment rails. Russia’s ruble-backed stablecoin A7A5 gains traction but still relies on USDT. South Korea’s Financial Services Commission will propose stablecoin legislation by October, pausing CBDC work as banks prepare won-backed stablecoins. The EU, under MiCA, has authorized issuers like Circle and Banking Circle, while the ECB aims to launch a digital euro by end-2025 on public blockchains such as Ethereum or Solana. Domestically, Wyoming released the USD-backed, non-interest Frontier Stable Token (FRNT) across seven networks via Kraken and Rain. In Washington, industry groups defend the GENIUS Act against bank-driven amendment calls. Meanwhile, market structure bills, including the CLARITY Act, await Senate action, with crypto advocates seeking developer exemptions after the Tornado Cash verdict. These developments signal a lasting shift in stablecoin legislation and digital payment infrastructure worldwide.
Bullish
Global advances in stablecoin legislation and digital payment frameworks signal greater regulatory clarity and infrastructure support. Pilots in China, South Korea’s draft laws, the EU’s MiCA approvals, and Wyoming’s FRNT launch expand market depth. The GENIUS Act defense and ongoing market structure bills highlight bipartisan momentum. While short-term volatility may arise from legislative debates and developer exemption fights, long-term growth prospects for stablecoins and related crypto markets are strengthened, suggesting bullish sentiment.