Stablecoin Surge Meets Regulatory Scrutiny in Hong Kong and U.S.

Stablecoins are experiencing a resurgence, with over $3.4 billion flowing into the market following the signing of the U.S. GENIUS Act. Institutional interest is climbing, particularly in Hong Kong, where more than 50 firms are vying for licenses under the new Stablecoin Ordinance set to take effect on August 1. Regulators warn that approvals will be stringent, emphasizing compliance.

The GENIUS Act, passed on July 18, has catalyzed a 1.32% rise in stablecoin market capitalization to nearly $266 billion. The legislation introduces a dual chartering system and monthly attestations, paving the way for bank-issued stablecoins. Players like Circle, Paxos, and JPMorgan’s Kinexys are now in sharper focus as institutional adoption becomes inevitable.

Hong Kong’s regulatory framework has sparked a Gold rush, with firms lining up despite warnings of rigorous oversight. Meanwhile, U.S. regulatory signals suggest a growing appetite to legitimize dollar-backed digital assets, further fueling market momentum.