Regulation Drives New Rise of Global Stablecoins, US and Hong Kong Regulations Lead a New Cycle for Digital Assets

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The global digital asset market enters a new cycle driven by regulation

With the introduction of stablecoin regulations in the United States and Hong Kong, the global digital asset market has officially entered a new growth phase driven by regulation. These regulations not only fill the regulatory gap regarding stablecoins pegged to fiat currency but also provide a clear compliance framework for the market, including asset reserve segregation, redemption guarantees, and anti-money laundering requirements, effectively reducing systemic risks such as bank runs or fraud.

This article will delve into the core framework of these two important regulations, combining quantitative forecasts to systematically project the growth trajectory of compliant stablecoins in US dollars over the next decade and their impact on the reconstruction of the public chain ecosystem.

I. Growth Drivers and Quantitative Analysis of Dollar Stablecoins under the US Act

The U.S. "GENIUS Act" was passed by the Senate in May 2025, marking a significant advancement in the regulation of stablecoins in the United States. The act establishes a detailed regulatory framework for stablecoin issuers, requiring issuers to hold reserves backed by at least 1:1 by highly liquid assets such as cash in U.S. dollars, short-term U.S. Treasury securities, or government money market funds, and to undergo regular audits while complying with anti-money laundering and know-your-customer requirements. Additionally, the act prohibits stablecoins from offering interest yields, restricts foreign issuers from entering the U.S. market, and clarifies that stablecoins are neither securities nor commodities, providing a clear legal positioning for digital assets.

The implementation of the bill is expected to have a profound impact on the global cryptocurrency market landscape. Firstly, investing in high liquidity dollar assets that do not allow for interest generation will directly benefit the issuance of U.S. Treasuries, making stablecoins an important channel for the distribution of U.S. Treasuries. Secondly, a clear regulatory framework may attract more financial institutions and technology companies to enter the stablecoin sector, promoting innovation and efficiency in payment systems. However, the bill has also sparked some controversy, such as potential conflicts of interest arising from the Trump family's involvement in the cryptocurrency industry, and the international regulatory coordination issues that may arise from restrictions on foreign issuers.

According to a forecast by a financial institution, under the scenario of clearer regulatory pathways, the global market value of stablecoins is expected to grow from $230 billion in 2025 to $1.6 trillion by 2030. This prediction is based on two key assumptions: first, compliant stablecoins will accelerate the replacement of traditional cross-border payment channels, saving approximately $40 billion in international remittance costs each year; second, the locked volume of stablecoins in decentralized finance protocols will exceed $500 billion, becoming the foundational layer of liquidity in decentralized finance.

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2. The Unique Positioning of Hong Kong's Stablecoin Regulatory Framework

The Hong Kong SAR government's recent release of the "Stablecoin Regulation" marks an important advancement in its systematic layout in the Web 3.0 field. The regulation establishes a licensing system for the issuance of stablecoins, requiring issuers to obtain permission from the Hong Kong Monetary Authority and to meet strict requirements in areas such as reserve asset management, redemption mechanisms, and risk control. In addition, Hong Kong plans to introduce a dual licensing system for over-the-counter trading and custody services within the next two years, further improving the comprehensive regulatory system for virtual assets.

The Hong Kong Monetary Authority plans to release operational guidelines on the tokenization of real-world assets by 2025, promoting the on-chain tokenization process of traditional assets such as bonds, real estate, and commodities. By utilizing smart contract technology, functions such as automatic dividend and interest distribution will be realized. Hong Kong is committed to building an innovative ecosystem that integrates traditional finance with blockchain technology, opening up broader application spaces for the development of Web 3.0.

Although the Hong Kong "Stablecoin Regulation Draft" draws on the regulatory logic of the United States, it exhibits significant differences in implementation details. For example, in terms of reserve asset requirements, qualifications for issuing entities, and cross-border regulatory coordination, Hong Kong has adopted a more flexible policy stance.

III. The Evolution of the Global Stablecoin Landscape under Regulatory Competition

(1) The strengthening effect of the US dollar stablecoin as a global reserve currency

Under the regulatory framework established by the "GENIUS Act", payment stablecoins must be backed by U.S. Treasury bonds as reserve assets. This requirement gives U.S. dollar stablecoins strategic significance beyond the realm of digital currencies. Essentially, these stablecoins have become a new distribution channel for U.S. Treasury bonds, creating a unique capital circulation system on a global scale.

From the perspective of international settlement, the emergence of stablecoins marks a paradigm shift in the US dollar clearing system. Blockchain-based stablecoins are embedded in various compatible distributed payment systems in the form of "on-chain dollars". This technological breakthrough has made the US dollar settlement capability no longer limited to traditional financial institutions, further consolidating its core position in the global monetary system.

(2) The Regulatory Coordination Challenges of Hong Kong and Singapore in Asia

Although Hong Kong and Singapore have similar goals in stablecoin regulatory policies, their implementation paths show significant differences. Hong Kong adopts a prudent tightening regulatory approach, while Singapore adheres to an experimental regulatory concept, allowing innovative pilots that link digital tokens to fiat currency.

This regulatory disparity may lead issuers to selectively register to evade strict scrutiny or to engage in arbitrage operations by exploiting the differences in regulatory standards. In the long run, if there is a lack of coordination, this divergence could undermine regulatory fairness and policy consistency, and even trigger regional regulatory competition risks.

Regulatory agencies in both regions need to strengthen policy coordination to seek a better balance between preventing systemic risks and encouraging financial innovation, in order to enhance Asia's overall influence in global digital finance governance.

Conclusion: Regulatory Clarity Opens a Golden Decade for Stablecoins

The joint implementation of the U.S. GENIUS Act and the Hong Kong regulation draft marks a shift in digital asset regulation from fragmentation to systematization. Compliant US dollar stablecoins are expected to see an order of magnitude growth within the next decade, becoming the core bridge connecting traditional finance and the crypto ecosystem. The technological evolution of public chain infrastructure will determine whether it can capture maximized value dividends within the regulatory framework. For issuers, building a stablecoin system that is multi-chain, multi-currency, and multi-regulatory compliant will be the key strategy to win the competition in the next decade.

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SmartContractRebelvip
· 07-15 09:38
Regulation is here, players need to catch a falling knife.
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MetaMiseryvip
· 07-13 03:19
Is it hard to stay calm even with regulation?
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LiquiditySurfervip
· 07-12 13:21
Market is about to da moon.
View OriginalReply0
ExpectationFarmervip
· 07-12 13:21
Regulation is better than a random collapse.
View OriginalReply0
CryptoAdventurervip
· 07-12 13:21
Hey, I have to pay the tuition again.
View OriginalReply0
GameFiCriticvip
· 07-12 13:20
The regulators have finally recognized this trend, and the indicators are pointing upward.
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AltcoinHuntervip
· 07-12 13:05
Once regulation comes, suckers are about to enter the market again.
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