The "co-dance" of policies and markets

The development of the cryptocurrency sector has always been inseparable from the "tightening spell" of policies. As an important participant in the global financial market, the policy dynamics of the United States regarding the cryptocurrency sector have always attracted significant attention. On May 19 this year, the U.S. Senate passed the "GENIUS Act," which clearly defines stablecoins as non-securities assets, requiring a 1:1 reserve of U.S. dollars or short-term U.S. Treasury bonds, prohibiting algorithmic stablecoins, and authorizing the Treasury Department to establish a "Non-Compliant Stablecoin List." The introduction of this act fills the regulatory gap in the U.S. regarding stablecoins and aims to attract more institutional investors while consolidating the dollar's position in the digital realm. On July 18, Trump signed the "GENIUS Act" into effect, establishing a federal unified regulatory framework, requiring issuers to obtain OCC approval, and limiting reserve assets to cash and government bonds, with the CEO/CFO responsible for the authenticity of the data. The implementation of this series of policies has had a profound impact on the market trends of the cryptocurrency sector. On one hand, the development of compliant stablecoins has received policy support, providing the market with more stable investment options; on the other hand, the prohibition of algorithmic stablecoins has reduced instability factors in the market, lowering investors' risks.

Apart from the United States, other countries have also introduced relevant policies. On May 21, 2025, the Legislative Council of Hong Kong passed the "Stablecoin Ordinance," which requires issuers to have a paid-up capital of HKD 25 million, and 100% of reserve assets to be held in isolated custody, prohibiting high-risk activities. This ordinance officially took effect on August 1, and the Monetary Authority began accepting license applications, with the first batch likely issuing only 3-4 licenses, initially pegged to the Hong Kong dollar / US dollar. This move solidifies Hong Kong's status as an international financial center, attracting companies like Ant Group and JD.com to apply for licenses, and promoting the compliant development of the stablecoin market.

The EU's MiCA regulation will partially come into effect on June 30, 2024, requiring stablecoin issuers to obtain authorization from member states, with reserve assets being held 1:1. The daily trading limit for non-euro stablecoins is set at €200 million. By 2025, 53 institutions have obtained licenses, including 14 stablecoin issuers, promoting the compliance process of the cryptocurrency market in the EU region.

Countries such as South Korea, Singapore, and the United Kingdom have also introduced corresponding stablecoin policies based on their own situations. These policies have, to some extent, regulated the cryptocurrency market and reduced market risks, but at the same time, they have imposed certain restrictions on market activity and innovation capabilities.