Are stablecoins ready for regulatory primetime?

Planned reforms to bring stablecoins into the regulatory fold have opened a door to greater participation in the digital asset economy for banks and payment firms, along with cultural challenges for crypto-native players. Charlotte Hill examines FCA consultation paper 25/14, Europe's MiCA framework and the implications for compliance professionals.

Charlotte Hill, a partner with Charles Russell Speechlys in London, has substantial experience in providing international regulatory advice on both fintech and other financial services regulation matters. Contact her on charlotte.hill@crsblaw.com.

Stablecoins have long been touted as the bridge between the world of cryptoassets and the conventional financial system. Promising to combine the innovation of distributed ledger technology with the stability of traditional money, they have attracted significant interest from payment firms, banks and regulators alike. However, until recently, the regulatory framework has struggled to catch up.