As momentum builds in Washington around crypto and stablecoin regulation, the market for stablecoins is quickly expanding. New legislation, shifting political priorities, and increased institutional interest are setting the stage for a more formalized, regulated stablecoin ecosystem.
In their latest research paper, visiting fellow Yaya J. Fanusie and research assistant Isabella Terry discuss:
- The rapid growth of fiat-backed stablecoins
- Ongoing risks in secondary markets and OTC transactions
- Gaps in AML enforcement
- The global coordination challenge around FATF guidance
While stablecoins present opportunities for innovation and financial inclusion, they also carry risks, particularly when it comes to illicit finance and cross-border enforcement gaps.
As the U.S. moves toward a more regulated environment, now is the time to ensure the stablecoin market grows safely, securely, and globally aligned.