{"article":"/posts/from-usdt-and-usdc-to-the-genius-act-why-i-started-paying-attention-to-stablecoin-regulation/","blocks":[{"id":"block-0","needsReview":true,"text":"After spending time learning about USDT and USDC, I thought I had finally figured out the stablecoin story. I had written about that learning process in [From Thinking All Stablecoins Were the Same to Understanding USDT and USDC](https://flowanriver.com/posts/from-thinking-all-stablecoins-were-the-same-to-understanding-usdt-and-usdc/), but the more I learned, the more I realized there was another side of the story I hadn't really considered.","translate":false,"type":"paragraph"},{"id":"block-1","needsReview":false,"text":"One is used almost everywhere. The other is often associated with transparency and compliance. That seemed to be the main difference.","translate":true,"type":"paragraph"},{"id":"block-2","needsReview":false,"text":"But it turned out I was only looking at the surface.","translate":true,"type":"paragraph"},{"id":"block-3","needsReview":false,"text":"One is used almost everywhere. The other is often associated with transparency and compliance. That seemed to be the main difference.","translate":true,"type":"paragraph"},{"id":"block-4","needsReview":false,"text":"But it turned out I was only looking at the surface.","translate":true,"type":"paragraph"},{"id":"block-5","needsReview":false,"text":"As I started following more crypto news and industry discussions, I noticed that people were talking less about USDT and USDC themselves and more about something else: regulation.","translate":true,"type":"paragraph"},{"id":"block-6","needsReview":false,"text":"To be honest, regulation has always been one of the least interesting topics for me. I'd much rather spend time exploring a new AI tool than reading policy documents or legislation.","translate":true,"type":"paragraph"},{"id":"block-7","needsReview":false,"text":"Yet recently, the word kept appearing everywhere. The United States was discussing stablecoin legislation. Hong Kong was introducing a licensing framework. Singapore was updating its own regulatory requirements.","translate":true,"type":"paragraph"},{"id":"block-8","needsReview":false,"text":"Slowly, I began to realize that the most important story about stablecoins might not be which one is bigger or more popular. It might be what happens when more and more people start using them.","translate":true,"type":"paragraph"},{"id":"block-9","needsReview":false,"text":"What Problem Are Stablecoins Actually Trying to Solve?","translate":true,"type":"heading"},{"id":"block-10","needsReview":false,"text":"When I first entered the crypto world, I saw stablecoins as simple tools. You used them to buy crypto, transfer funds, or park assets when markets became volatile. That was it.","translate":true,"type":"paragraph"},{"id":"block-11","needsReview":false,"text":"I never stopped to think about questions like: Who guarantees that a stablecoin is really worth one dollar? What happens if the issuer runs into trouble? Who is responsible for protecting users?","translate":true,"type":"paragraph"},{"id":"block-12","needsReview":false,"text":"At first, those questions felt distant and theoretical. Later, I realized they are exactly the questions regulators care about. Are the reserves actually there? Is the issuer transparent enough? Who takes responsibility when something goes wrong?","translate":true,"type":"paragraph"},{"id":"block-13","needsReview":false,"text":"This reminded me of my own experience running cross-border business. Receiving payments, exchanging currencies, sending funds internationally — every step involves fees, waiting times, and multiple intermediaries. At the time, I simply thought the process was inconvenient. I never really thought about why it worked that way.","translate":true,"type":"paragraph"},{"id":"block-14","needsReview":false,"text":"Over time, I started to understand that stablecoins are trying to reduce some of those frictions. They're not necessarily replacing banks, but they offer another way for value to move across borders more directly and at a potentially lower cost.","translate":true,"type":"paragraph"},{"id":"block-15","needsReview":false,"text":"I used to think regulation and innovation were on opposite sides. Now I'm not so sure.","translate":true,"type":"paragraph"},{"id":"block-16","needsReview":false,"text":"When Stablecoins Start Moving Beyond Crypto","translate":true,"type":"heading"},{"id":"block-17","needsReview":false,"text":"If stablecoins only existed inside crypto trading platforms, regulators probably wouldn't pay much attention. The problem is that they no longer exist only inside crypto.","translate":true,"type":"paragraph"},{"id":"block-18","needsReview":false,"text":"Today, many Web3 wallets allow users to send and receive stablecoins directly. More people are using them for cross-border transfers. Some digital services are beginning to accept blockchain-based payments.","translate":true,"type":"paragraph"},{"id":"block-19","needsReview":false,"text":"Individually, these developments may seem small. Together, they create a very different picture. Stablecoins are gradually moving beyond the crypto industry — and once they become connected to payments, commerce, and international money movement, regulation naturally follows.","translate":true,"type":"paragraph"},{"id":"block-20","needsReview":false,"text":"For someone involved in cross-border business, this shift doesn't feel abstract. If stablecoin payments eventually become as common as traditional bank transfers, questions around fees, settlement times, and currency conversion could look very different from what we're used to today.","translate":true,"type":"paragraph"},{"id":"block-21","needsReview":false,"text":"Regulation isn't just a policy discussion anymore. It may eventually affect how people do business online.","translate":true,"type":"paragraph"},{"id":"block-22","needsReview":false,"text":"The Signal Behind the GENIUS Act","translate":true,"type":"heading"},{"id":"block-23","needsReview":true,"text":"The [GENIUS Act](https://www.govinfo.gov/app/details/PLAW-119publ27) in the United States gave me exactly that feeling. Signed into law on July 18, 2025, it established a federal framework for payment stablecoins.","translate":false,"type":"paragraph"},{"id":"block-24","needsReview":false,"text":"What interested me wasn't every detail of the legislation. It was the signal behind it. The law introduced requirements concerning reserves, transparency, and oversight. In other words, if a company wants to issue a payment stablecoin that people can rely on, it needs to meet clearer standards for how that stablecoin is backed and managed.","translate":true,"type":"paragraph"},{"id":"block-25","needsReview":false,"text":"A few years ago, many crypto conversations focused on a simple question: \"Does this technology have a future?\" Today, the conversation is increasingly becoming: \"If it does have a future, how should it be regulated?\"","translate":true,"type":"paragraph"},{"id":"block-26","needsReview":false,"text":"Those are very different questions. When people are still debating whether something should exist, it's usually in the experimental stage. When they start discussing rules, standards, and oversight, it often means the technology has become too important to ignore.","translate":true,"type":"paragraph"},{"id":"block-27","needsReview":true,"text":"For projects like [USDC](https://www.circle.com/usdc), which have long emphasized compliance and transparency, this trend could be positive. For [USDT](https://tether.to), it may also create greater pressure around transparency and reserves. In the future, competition between stablecoins may increasingly be shaped by regulatory credibility rather than market share alone.","translate":false,"type":"paragraph"},{"id":"block-28","needsReview":false,"text":"It's Not Just the United States","translate":true,"type":"heading"},{"id":"block-29","needsReview":false,"text":"One thing that surprised me while researching this topic was how similar discussions are happening across different regions.","translate":true,"type":"paragraph"},{"id":"block-30","needsReview":true,"text":"Hong Kong is a good example. In May 2025, Hong Kong's Legislative Council passed the [Stablecoins Ordinance](https://www.hkma.gov.hk/eng/key-functions/international-financial-centre/fintech/stablecoin-issuers-sandbox/), which officially came into effect on August 1, 2025. Under the framework, issuers of fiat-referenced stablecoins targeting Hong Kong users must obtain a license from the Hong Kong Monetary Authority. Issuers must maintain full reserve backing, meet minimum capital requirements, and comply with disclosure, redemption, and reserve management obligations.","translate":false,"type":"paragraph"},{"id":"block-31","needsReview":false,"text":"The first application round closed in September 2025, and dozens of applications were reportedly submitted. What really caught my attention was seeing major business figures publicly express interest — JD.com founder Richard Liu, for example, has spoken about using stablecoins to reduce cross-border payment costs and improve settlement efficiency. When large traditional businesses start paying serious attention to stablecoins, the conversation has clearly moved beyond the crypto community.","translate":true,"type":"paragraph"},{"id":"block-32","needsReview":true,"text":"Singapore has been moving in a similar direction. The [Monetary Authority of Singapore (MAS)](https://www.mas.gov.sg/news/media-releases/2023/mas-finalises-stablecoin-regulatory-framework) introduced its own stablecoin framework, focusing on reserve stability, redemption rights, and consumer protection for single-currency stablecoins pegged to the Singapore dollar or G10 currencies.","translate":false,"type":"paragraph"},{"id":"block-33","needsReview":false,"text":"The details may differ, but the direction is similar. Governments are acknowledging that stablecoins exist and are creating rules that allow them to operate more safely. That doesn't look like the end of innovation — it looks more like the beginning of a longer-term framework.","translate":true,"type":"paragraph"},{"id":"block-34","needsReview":false,"text":"A Beginner's Perspective","translate":true,"type":"heading"},{"id":"block-35","needsReview":false,"text":"When I first started learning about crypto, I focused on prices. Later, I became interested in projects. Then I started learning about wallets, stablecoins, and on-chain applications. Now I find myself paying attention to regulation.","translate":true,"type":"paragraph"},{"id":"block-36","needsReview":true,"text":"Not because regulation is exciting on its own. But because once you follow the stablecoin story long enough, it becomes impossible to ignore. And the more I learned about stablecoin regulation, the more I began paying attention to the broader rules surrounding digital assets. That question eventually led me to explore the CLARITY Act, which I discussed in [Crypto Is Becoming Financial Infrastructure: Why the World Was Watching the CLARITY Act](https://flowanriver.com/posts/crypto-is-becoming-financial-infrastructure-why-the-world-was-watching-the-clarity-act/).","translate":false,"type":"paragraph"},{"id":"block-37","needsReview":false,"text":"Stablecoins aren't really just about coins. They're about how money moves. They're about whether cross-border payments can become simpler. They're about how value might be exchanged in an increasingly digital world.","translate":true,"type":"paragraph"},{"id":"block-38","needsReview":false,"text":"For people involved in international business and global payments, these questions are no longer theoretical. They're already beginning to shape the way business is done.","translate":true,"type":"paragraph"},{"id":"block-39","needsReview":false,"text":"A year ago, if someone had told me I'd be voluntarily reading news about stablecoin legislation, I probably wouldn't have believed them. But looking back, it feels like a natural progression.","translate":true,"type":"paragraph"},{"id":"block-40","needsReview":false,"text":"Because once you understand USDT and USDC, the next question almost asks itself:","translate":true,"type":"paragraph"},{"id":"block-41","needsReview":false,"text":"If more people start using stablecoins in the future, how will the world choose to manage them?","translate":true,"type":"paragraph"},{"id":"block-42","needsReview":false,"text":"And perhaps that's where the next chapter of the stablecoin story begins.","translate":true,"type":"paragraph"},{"id":"block-43","needsReview":true,"text":"*Sources: [GENIUS Act — U.S. Congress](https://www.congress.gov/bill/119th-congress/senate-bill/394) · [Circle (USDC)](https://www.circle.com/usdc) · [Tether (USDT)](https://tether.to) · [Hong Kong Monetary Authority](https://www.hkma.gov.hk/eng/key-functions/international-financial-centre/fintech/stablecoin-issuers-sandbox/) · [Monetary Authority of Singapore](https://www.mas.gov.sg/news/media-releases/2023/mas-finalises-stablecoin-regulatory-framework)*\\\n\\\n*Disclaimer: This article reflects my personal learning journey and observations. It is not investment, legal, or financial advice. Regulations surrounding digital assets and stablecoins vary by country and region. Please refer to official sources and local regulations before using related products or services.*","translate":false,"type":"paragraph"}],"count":44,"date":"2026-06-12","description":"From thinking stablecoins were just trading tools to understanding why USDT, USDC, and global regulation all matter — a beginner's honest look at where stablecoins are heading.","tags":["crypto"],"title":"From USDT and USDC to the GENIUS Act: Why I Started Paying Attention to Stablecoin Regulation"}