Stablecoins, cryptocurrencies pegged to traditional fiat currencies, are increasingly coming under the spotlight as governments and financial regulators call for stricter oversight.
The U.S. Treasury has proposed new regulations that would require stablecoin issuers to maintain full reserves and operate under the same standards as traditional financial institutions.
Meanwhile, the European Union is working on its Markets in Crypto-Assets (MiCA) regulation, which includes provisions specifically targeting stablecoins.
These developments reflect concerns over the potential risks stablecoins pose to financial stability, particularly as their use in payments and DeFi continues to grow.
The regulatory scrutiny is expected to shape the future of stablecoins, with implications for both issuers and users.
