Stablecoins: Discussing the 'Stability' of Cryptocurrencies The tug-of-war between regulation and innovation surrounding stablecoins is emerging as a global issue, not just confined to the United States. Once considered a peripheral concept in the cryptocurrency market, stablecoins are now recognized for their importance across the financial sector, prompting US federal financial authorities to actively engage in supervision and regulatory framework development. What impact will the latest regulatory report, published by the American Bankers Association (ABA) on March 19, 2026, have on the global economy and financial stability? As their name suggests, stablecoins are cryptocurrencies that prioritize 'stability.' Pegged to fiat currencies or other assets to reduce volatility, these digital assets have greater potential for use as a means of payment than traditional cryptocurrencies. However, regulation and oversight are essential to ensure stability. The US is currently, in 2026, fully implementing the 'Guidance for Enhancing National Innovation and Understanding of Stablecoins Act (GENIUS Act),' enacted in 2025. This effort aims to clearly define the issuance and activities of stablecoins, pursuing both innovation and safety simultaneously. The regulatory framework announced by US federal financial authorities in mid-March 2026 further specifies this direction. The Federal Deposit Insurance Corporation (FDIC) has strengthened the approval process required for banks issuing payment stablecoins through their subsidiaries and extended the official comment period to gather feedback from banks and the industry. Furthermore, the National Credit Union Administration (NCUA) has introduced new proposed regulations for subsidiaries of Federally Insured Credit Unions (FICUs) issuing payment stablecoins. These changes indicate that stablecoins are no longer confined to the experimental realm of cryptocurrencies but are being integrated into the broader financial industry framework, subjecting them to stricter oversight. Specifically, the capital and operational requirements, effective in 2026, elevate stablecoin issuance from a mere new product launch to a level akin to operating a regulated financial institution. US authorities are demanding conditions for stablecoin issuers such as minimum capital thresholds, liquidity buffers exceeding token redemption obligations, formal governance structures, stringent internal control standards, and explicit third-party risk management expectations. Opportunities and Challenges Arising from Regulatory Clarity A particularly noteworthy aspect is the new treatment for international issuers. Non-US stablecoin issuers intending to offer services to US users must apply for registration with the Office of the Comptroller of the Currency (OCC) and grant access to US government jurisdiction and records. This is interpreted as an intention to expand US regulatory influence in the global stablecoin market. Furthermore, the FDIC has explicitly stated that stablecoins are not subject to federal deposit insurance and are not backed by the full faith and credit of the US government. It further strengthens consumer protection by explicitly prohibiting issuers from promoting stablecoins as being "backed by the full faith and credit of the US government or covered by federal deposit insurance." These measures are seen as part of an effort to reduce the confusion caused by a lack of regulation and to operate the market transparently and stably through a clear regulatory framework. However, such strengthened regulation may not bring only positive effects. On one hand, it provides a favorable environment for existing financial institutions, while on the other, concerns are being raised that it could create entry barriers for startups and innovative companies. For instance, small businesses that cannot meet stringent regulatory and capital requirements are likely to be naturally eliminated from the market. Specifically, minimum capital thresholds and liquidity buffer requirements can impose a significant financial burden on early-stage fintech companies. This raises concerns about reducing the diversity of the stablecoin market and a potential restructuring of the market around large financial institutions. Simultaneously, rapidly strengthened regulations could diminish market flexibility and hinder the development of innovative services. Furthermore, among cryptocurrency proponents, there are concerns that excessive regulation could undermine the inherent decentralized nature of stablecoins. The formal governance structures and third-party risk management requirements are direct applications of traditional banking regulatory methods, leading to criticism that they could restrict the innovativeness of blockchain-based finance. However, supervisory bodies like the FDIC continue to emphasize the necessity of stablecoin regulation, stressing stability and trust. The concern that "the adverse effects of
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