Stablecoins may be the most crucial piece in this digital currency revolution.

Senator Bill Hagerty’s words—"We are on our way to becoming the crypto capital"—still echo in our ears. In July this year, Trump signed the "Guidance and Establishment of the National Innovation Act for U.S. Stablecoins"—this means stablecoins have officially entered the mainstream financial spotlight, no longer just experimental products in a legal gray area.

Almost at the same time, Hong Kong launched its "Stablecoin Regulation" on August 1. This is the world’s first region to establish a comprehensive regulatory framework for fiat-backed stablecoins, with an open licensing system that allows issuers to freely choose their anchor currencies.

Even more intriguing are the moves by traditional financial giants: Citibank, JPMorgan Chase, Standard Chartered... More than 10 globally systemically important banks have already quietly begun to lay out their own stablecoin businesses.

The regulatory winds have shifted

Remember a few years ago? Regulators in various countries basically took a "don’t understand/can’t touch" approach to cryptocurrencies. Now, their attitude has taken a 180-degree turn.

The U.S. Congress passed the stablecoin bill by an overwhelming majority, with a simple core requirement: for every $1 of stablecoin issued, there must be an equivalent value of highly liquid, safe assets backing it. This draws a clear red line for stablecoin issuance and gives the market a clear set of rules.

Hong Kong’s Financial Secretary Paul Chan was also very direct: the "Stablecoin Regulation" will establish a licensing regime for fiat-backed stablecoin issuers and adopts an open model—which means various fiat currencies can participate.

The biggest surprise actually comes from the Federal Reserve. In August this year, the Fed directly halted the strict regulatory program from the Biden era that targeted banks’ involvement in crypto activities.