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stablecoins are no longer the silent companions of the crypto world, they have taken center stage, changing the way money flows around the world. These digital currencies, pegged to stable assets like the US dollar, are gaining traction and are hotly debated across the globe from the US. With the latest developments this week, let’s take a look at the state of stablecoins and how they are affecting the US, Russia, the UK and global markets.
Stablecoin Market Up: With a Power of $250 Billion
The stable coin market reached a value of $245 billion this week, up 0.78% over the past seven days. Tether (USDT) and USD Coin (USDC) have captured more than 90% of the market, with USDT at 142 billion and USDC at 62 billion. USDC has grown by 40% this year, outpacing Tether’s 10% growth. This is because Bitcoin and Ethereum have allowed for fast and cost-effective money transfers without the large price fluctuations, and their on-chain transaction value is expected to reach $2.76 trillion in 2024, more than Visa and Mastercard combined, and is set to surpass that by 2025. For example, USDC can send $500 to a relative in minutes, with fees less than a dollar, making it a great way for people to make online purchases and payments. In the UK, London-based fintech companies have taken the lead in using stable coins for e-commerce and international transactions, cutting bank fees.
Regulatory rollercoaster: GENIUS Act moves forward
The biggest news this week is the US Senate’s GENIUS Act, a proposed bill to regulate stable coins with a market cap of more than $10 billion. It passed the House on May 26 with 15 Democrats and 1 Republican in favor, showing bipartisan support. The bill would require institutions like Tether and Circle to hold full reserves and operate under federal or state supervision. US Vice President J.D. Vance said at Bitcoin 2025 in Las Vegas on May 28 that stablecoins are a “powerful catalyst” for the US dollar. Trump’s crypto advisor David Sacks has said that the bill would increase demand for US Treasury bills by trillions, as Tether and Circle already hold $204 billion in Treasury bills.
But there are problems. Democratic senators Chris Murphy and Elizabeth Warren have been warning about problems with President Trump’s family’s USD1 stablecoin (launched in March). For American readers, this would create a safer stablecoin market, but the high regulatory burden could make it difficult for smaller institutions to compete.
In the UK, the EU’s MiCA rules, which came into effect in January 2025, require stablecoin institutions to be licensed and hold full reserves. Since Tether’s USDT is not yet compliant with MiCA rules, it is at risk of being delisted in Europe, which gives a big opportunity for USDC or a new Euro/Pound currency. For UK readers, this is a great opportunity for London to continue its rise as a crypto hub. In Russia, we are already seeing crypto regulations tighten, but stablecoins are still new territory. They are often used for international transactions to circumvent sanctions, but it remains to be seen whether the new rules will legalize or restrict them.
Banks are also joining the game: a new stablecoin competitor?
In particular, big banks in the US, such as JPMorgan, Bank of America, and Citigroup, are planning to launch a joint stablecoin using payment networks such as Zelle or The Clearing House. As The Wall Street Journal reported on May 22, this is starting to shift away from the crypto-adversarial stance and become more competitive. Banks are preparing to introduce stablecoins, offering integrated payments through banking apps. This could be a competition to stablecoins, USDT and USDC. However, it will undoubtedly provide Americans with easier banking transactions, and it is likely that US banks will push this stablecoin into global trade for businesses in the UK and Russia.
Circle, the company behind USDC, launched a $624 million IPO on May 27, valuing it at $5.65 billion, showing their confidence in the future of stablecoins.
Stablecoin regulations : From Trade to Taxes
Stablecoins are changing the global market in a variety of ways. In countries with high inflation, they provide a hedge against currency devaluation. For example, a Russian exporter can convert rubles into USDT to pay Chinese suppliers without losing value. In the US and UK, companies like Stripe allow the use of USDT, which is seen to be beneficial, reducing international payment fees from 5% to less than 1%. Social media and X posts show that stablecoin transactions are outperforming traditional payments.
Risks and Expectations: Things to Watch
Stable coins have their problems. Tether is still not fully audited, so there are questions about its reserves. USDC is ahead in its transparency. There is also the risk of “dips” like the 2022 TerraUSD crash, which is clearly being heavily influenced by US and UK regulations. Platforms like Hedera are driving stablecoin adoption, with 91.7% growth in Q1 2025.
What’s next?
At the end of June 2025, stable coins are at a critical juncture. The GENIUS Act looks set to make the US a stable coin stronghold, but a balance needs to be struck. In the UK, the impact of MiCA could lead to the emergence of new stablecoins. In Russia, we will have to watch to see whether the laws legalize or restrict them. For investors and businesses, stablecoins have proven to offer fast, profitable, and stable transactions. But it’s important to stay up to date with regulatory and market changes.
Stay tuned for daily updates on stablecoin news and how they’re impacting your world with coinsbeat.
Sources: CoinDesk, Reuters, Chainalysis, X posts by verified analysts
