There’s been significant progress in stablecoin regulation—on both sides of the world.

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In the U.S., on May 19, 2025, the Senate passed the bipartisan GENIUS Act (Guaranteeing Essential New Infrastructure in Upholding Stablecoins), which clarifies the federal framework for stablecoin issuance. The bill still needs House approval and reconciliation, but its Senate passage is a notable step. The Act lays the groundwork for defining state and federal-regulator roles, sets reserve requirements, and opens a path toward broader institutional adoption—without stifling innovation. For the crypto industry, it signals a growing recognition of stablecoins as a legitimate piece of the financial infrastructure.

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Meanwhile, Hong Kong continues to make clear its intention to become a digital asset hub. On May 21, 2025, the Legislative Council passed a bill establishing a licensing regime for fiat-referenced stablecoin (FRS) issuers, to be administered by the Hong Kong Monetary Authority (HKMA). Starting in 2026, any entity issuing FRS to the public in Hong Kong—or actively marketing such offerings there—will need a license. The new framework focuses on risk management, governance, reserve backing, and clear segregation of assets.

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The alignment between jurisdictions is encouraging. Both the U.S. and Hong Kong agree that stablecoins are here to stay, but guardrails are essential. While neither approach is fully harmonized (at least not yet), the message is clear: regulatory clarity is no longer a distant promise - it’s accelerating. 

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We’re entering an era where stablecoins are moving out of the gray zone and into regulated legitimacy. For builders, it’s time to get ahead of the curve. For institutions, it’s time to get in the game.

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