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U.S. Stablecoin Regulation Takes Shape: Implications of the STABLE Act of 2025
Nicolai Søndergaard
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Key Takeaways
15 min read
  • Winners: Expected regulated issuers like USDC, PYUSD, and banks benefit from clear rules and early compliance.
  • Negative impact: Algorithmic stablecoins (at least momentarily), yield-bearing stablecoins in a limbo state (Payment stablecoins are not allowed to provide yields)
  • Prediction: Market consolidation ahead; backend infrastructure (compliance & custody etc.) will see major growth.

Introduction

Stablecoins have evolved from fringe utility to core infrastructure in the digital asset ecosystem. As of February 2025, more than $218 billion in fiat-backed stablecoins are in circulation, powering everything from centralized exchange trades to DeFi protocols.

Yet this rapid growth has outpaced regulation, prompting concerns around consumer protection, systemic risk, and the U.S. dollar’s role in a digitizing economy. In response, U.S. lawmakers introduced the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act in March 2025. The legislation proposes a federal...