Stop Focusing on Bitcoin: Stablecoins Are Seeing Big Changes
In the past week, the crypto market has rebounded sharply, and Bitcoin has also hit a new high. At the same time, stablecoins are also undergoing some major changes.
Legislative victories in the United States and Hong Kong
On May 19, the U.S. Senate passed the United States Stablecoin National Innovation Guidance and Establishment Act of 2025 (GENIUS Act) by a vote of 66 to 32. The bill requires issuers to hold cash or U.S. Treasury bonds as reserves and comply with anti-money laundering and counter-terrorism financing standards.
In addition, the Hong Kong Legislative Council passed the long-awaited Stablecoin Bill, which establishes a licensing system for issuers of fiat reference stablecoins (FRS). The Hong Kong government announced the legislative move on May 21, aiming to strengthen the supervision of virtual asset activities and promote financial stability and innovation in the region.
Regulatory clarity has always been widely seen as a positive signal that can enhance investor confidence in the cryptocurrency space.
Trump-backed USD1 stablecoin listed on Binance, trading volume surges 31.9%
On May 22, Binance launched USD1, a dollar-pegged stablecoin issued by World Liberty Finance (WLFI) and backed by the Trump family. According to CoinGecko, trading volume surged 31.9% to over $95 million, a 626.5% increase in 24 hours. Cryptocurrency exchange KuCoin also launched USD1 on May 21, reflecting the growing market interest.
In addition to listing on exchanges, WLFI's USD1 has also received notable attention for its role in high-profile institutional transactions. Abu Dhabi-based investment firm MGX chose USD1 to settle its $2 billion investment in Binance.
US banking giants considered jointly launching stablecoins
According to a report by the Wall Street Journal on May 22, top US financial institutions such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are exploring the possibility of issuing joint stablecoins. These discussions involve businesses jointly owned by these banks, including Early Warning Services, which operates the peer-to-peer payment system Zelle, and Clearing House, a real-time payment network.
These developments highlight the growth potential of stablecoins. The U.S. Treasury Department predicts that the stablecoin market size could soar to $2 trillion by 2028. In addition, Citigroup predicts that the market value of stablecoins will reach $3.7 trillion by 2030.
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