Global regulators advance new stablecoin oversight and licensing rules

Regulators in the United States, United Kingdom, and European Union are advancing new frameworks to increase oversight of stablecoins and cross-border digital asset transfers.

In the European Union, officials are preparing to review the Markets in Crypto Assets (MiCA) framework. The review aims to address the exclusion of non-EU stablecoin issuers, such as Tether, from current licensing requirements. Lawmakers are also considering how to incorporate emerging technologies like tokenization into the existing regulatory structure to prevent users from being "either unprotected or cut off."

In the United States, the Treasury is proposing regulations under the GENIUS Act to ensure intermediaries and issuers are traceable, targeting illicit finance. Similarly, the United Kingdom is implementing a two-tier oversight system through the Financial Conduct Authority and the Bank of England. This system will regulate the issuance and custody of fiat-backed stablecoins, with specific heightened oversight for