2 PAYMENT METHOD PROFILES: STABLECOIN
Regulation
Year Introduced
Country
Status
Regulation
Stablecoin Definition
Main Takeaways
Covers asset-referenced tokens, e-money tokens, utility tokens. Asset-referenced tokens are backed by currencies that are legal tenders therefore they also are recognized as a legal tender. Introduces requirements for crypto-asset issuers and service providers in the areas of supervision and authorization of transactions, transparency, and disclosure of the environmental impact of crypto- assets. Crypto-asset service providers need authorization to operate in the EU and are expected to protect consumers’ wallets and held liable if investors’ crypto-assets are lost. Federal Standards: Maintain reserves backing the issuer’s payment stablecoins on at least a 1:1 basis Segregating the reserves from operational funds Avoiding rehypothecation Completing a monthly certification that attest to the sufficiency of reserves Satisfying capital and liquidity requirements 770 Creates a framework for permitting payment stablecoin issuers Stablecoin issuers with greater than $10 billion in market cap subject to federal regulation Stablecoin issuers with less than $10 billion in market cap have option to subject to state regulation Applies to single-currency stablecoins (SCS) pegged to Singapore Dollar or any G10 currency that are issued in Singapore Issuers will have to fulfil requirements regarding value stability, capital, redemption at par, and disclosure to users. Added to the Payments Services Act (PSA) June 2023 – stablecoin regulations introduced Crypto asset definition similar to Singapore, but different from the U.S. Requirements for crypto asset exchange service providers
“…algorithmic ‘stablecoins’ that aim to maintain a stable value in relation to an official currency, or in relation to one or several assets, via protocols, that provide for the increase or decrease in the supply of such crypto-assets in response to changes in demand.”
Markets in Crypto-Assets Regulation (MiCA) 766 767
European Union
2023
Active
“The term ‘payment stablecoin’ means a digital asset that is or is designed to be used as a means of payment or settlement; and the issuer of which is obligated to convert, redeem, or repurchase for a fixed amount of monetary value; and represents will maintain or creates the reasonable expectation that it will maintain a stable value relative to the value of a fixed amount of monetary value; that is not a national currency; or a security issued by an investment company registered under section 8(a) of the Investment Company Act of 1940.”
Guiding and Establishing National Innovation for U.S. Stablecoins (“GENIUS”) Act 768 769
U.S.
2025
Active
“Stablecoins are digital payment tokens designed to maintain a constant value against one or more specified fiat currencies.” 772
MAS Stablecoin Regulatory Framework 771
Singapore 2023
Active
Regulatory Framework for Crypto- assets and Stablecoins 773
Japan
2023
Active
Table 2.27
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