The global acceleration in building a stablecoin regulatory framework has become a focal point for balancing innovation and risk.

Stablecoins, as an important infrastructure in the Crypto Assets market, are gradually breaking through the boundaries of on-chain ecosystems and delving into the operational aspects of the TradFi system and the real economy. However, the technological innovations of stablecoins also bring potential risks, necessitating regulatory agencies to construct a systematic regulatory framework to balance innovation and risk.

Stablecoins primarily face two major risks: first is intrinsic risk, which means the value stability of stablecoins relies on market consensus and trust mechanisms; once the foundation of trust collapses, it may trigger a "death spiral"; second is external risk, which means the anonymity and cross-border liquidity of stablecoins can easily be exploited by illegal activities.

To address these risks, major global economies are accelerating the construction of stablecoin regulatory frameworks. Taking Hong Kong and the United States as examples:

Hong Kong will release the "Stablecoin Regulation Draft" in December 2024, clarifying the definition of stablecoins, regulated activities, issuer access thresholds, reserve asset management requirements, etc. At the same time, it will launch the "Stablecoin Sandbox" program to provide issuers with a testing environment and compliance support.

The United States is currently building a regulatory framework primarily through the GENIUS Act and the STABLE Act, which clarify the definition of stablecoins, issuer qualifications, reserve asset requirements, and more. Regulatory authority is distributed between federal and state levels, forming a multi-layered regulatory system.

With the continuous improvement of the regulatory framework, the stablecoin industry will enter a new stage of balanced development between standardization and innovation. This not only requires issuers to enhance compliance capabilities but also provides institutional space for exploring new business models. In the future, the stablecoin industry will seek new growth momentum and value creation points within the global financial regulatory system.