Regulatory progress reinforces the rise of stablecoins

The regulatory advance reinforces the rise of stablecoins, cryptocurrencies designed to be equivalent to currencies such as the dollar or the euro. The package of measures announced by the US government is focused on regulating these assets.

Joaquim Matinero,  counsel in the blockchain area, comments in ABC on how the Genius Act and the Stablecoin Act are “two key proposals to provide legal certainty for the use of stablecoins,” which seek to integrate digital currencies into traditional payment systems. He adds: “They include external audits, transparency obligations, and a dual licensing system in which small issuers will operate under state regulation, while large issuers will be under the direct supervision of the Federal Reserve, thereby reinforcing confidence in these currencies as regulated payment vehicles.”

In Europe, the MiCA Regulation aims to achieve the same goals, but it is still in its early stages. Our expert explains that “it will require a second, more technical and agile regulatory phase if Europe wants to keep up.” He believes that the challenge in regulating stablecoins “will be to innovate without compromising stability or user protection.”