Stablecoin regulation

Stablecoins promise a stable value, usually one US dollar or euro, so regulators focus on whether issuers really hold enough safe assets to honour redemptions. Typical rules cover licensing, one-to-one reserves in cash and short-term government debt, segregation of those reserves, regular attestations and a legal right to redeem at par.

In the EU, MiCA's stablecoin rules have applied since June 2024: fiat-backed coins pegged to one currency are e-money tokens (EMTs), while those backed by a basket of assets are asset-referenced tokens (ARTs), and both need an authorized issuer. Several exchanges restricted unauthorized stablecoins for EU users as a result. In the United States, the GENIUS Act, signed in July 2025, created a federal framework for payment stablecoins with full reserve backing.

Rules differ between jurisdictions, so a stablecoin may be legal in one market and restricted in another. Regulation reduces but does not remove risks such as a depeg, a frozen balance or the failure of a reserve bank.