Stablecoin Regulation: A Global Patchwork Paving the Way for Consolidation
Global stablecoin regulation presents a fragmented landscape with distinct frameworks like Europe's MiCA, the US's GENIUS Act, and Hong Kong's rules.
These divergent models, particularly regarding issuer eligibility and reserve requirements, force stablecoin issuers to build parallel compliance structures for each jurisdiction, increasing costs and operational complexity. This "compliance asymmetry" may lead to market consolidation, favoring larger, well-capitalized entities and stifling innovation by smaller firms.
While countries strategically position regulation to attract capital, the growing integration of stablecoins into global finance will likely drive a push towards convergence and alignment of baseline standards for reserves and risk mitigation. The US's GENIUS Act and Hong Kong's cautious approach are poised to influence future global norms.