Stablecoin income surpasses $10 billion during market expansion

Stablecoin income surpasses $10 billion during market expansion

In the ever-evolving landscape of cryptocurrency, the United States is taking significant steps to regulate the issuers of stablecoins, digital assets designed to maintain a stable value. This regulatory push comes as the market capitalisation of stablecoins has peaked at an impressive $228 billion, with key players like Tether and Circle generating close to $10 billion in revenue.

**A Regulatory Framework Emerges**

The U.S. Senate passed the "Guiding and Establishing National Innovation for U.S. Stablecoins Act" (GENIUS Act) in June 2025, aiming to establish a federal regulatory framework for payment stablecoins. This bill is designed to differentiate between issuers that qualify as "permitted payment stablecoin issuers" (PPSIs) and those that do not. Depending on their size and structure, issuers may be regulated at either the federal or state level, or both. Foreign issuers would be permitted to operate in the U.S. only through intermediaries, provided they meet comparable requirements and become subject to supervision by the Office of the Comptroller of the Currency (OCC).

A companion bill, the "Stablecoin Transparency and Accountability for a Better Ledger Economy Act of 2025" (STABLE Act 2025), is currently under consideration in the House. The House will decide whether to adopt the Senate’s GENIUS Act or reconcile differences between the two bills, with notable differences including consumer protection provisions, issuer size thresholds, and the role of state regulators.

**Market Leaders Adapt**

The regulatory momentum is expected to provide much-needed clarity for stablecoin issuers such as Tether (USDT issuer) and Circle (USDC issuer). Both companies are at the forefront of the stablecoin market, which has grown rapidly in recent years due to its utility in cryptocurrency trading, DeFi (decentralized finance), and cross-border payments.

Circle, known for its close working relationship with U.S. regulators and banks, is well-positioned for compliance under the new frameworks. Tether, while globally dominant, faces more scrutiny regarding reserves and transparency. U.S. regulations could require Tether to establish U.S.-compliant subsidiaries or partnerships with registered intermediaries if it wishes to operate directly within the U.S. market.

**Emerging Players Navigate the Regulatory Landscape**

Any new or emerging stablecoin protocol, such as Sky Protocol, would be subject to the same federal and/or state regulatory and registration requirements under the GENIUS Act and any reconciled legislation. This means that these emerging players would need to establish compliance infrastructure to operate within the U.S. market.

**Market Response**

The regulatory clarity is generally seen as positive for market confidence, as it reduces legal uncertainty and could foster greater institutional adoption. However, some market participants express concerns about the potential for increased compliance costs and operational burdens, particularly for smaller or foreign issuers.

**Looking Ahead**

The regulatory process is ongoing, with the House still to act and possible amendments or reconciliations between the Senate and House bills. The ultimate regulatory framework will define the operational requirements for all stablecoin issuers in the United States, including Tether, Circle, and Sky Protocol.

John Kojo Kumi, a cryptocurrency researcher and writer specializing in blockchain ecosystem, DeFi, NFTs, and Web3 innovations, is closely tracking and reporting on these industry trends. As the regulatory landscape evolves, so too will the future of stablecoins in the United States.

[1] Senate.gov, Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) [2] House.gov, Stablecoin Transparency and Accountability for a Better Ledger Economy Act of 2025 (STABLE Act 2025) [3] OCC.gov, Stablecoin Guidance and Supervision Framework

1. The passing of the GENIUS Act by the U.S. Senate in 2025 signifies a significant step towards establishing a federal regulatory framework for payment stablecoins, thereby differentiating between issuers and providing clarity for market leaders like Tether and Circle.
2. The STABLE Act 2025, currently under consideration in the House, aims to further regulate stablecoin issuers, addressing consumer protection, issuer size thresholds, and the role of state regulators, which could impact the industry significantly.
3. Emerging players in the stablecoin market, such as Sky Protocol, will be subject to the same regulatory and registration requirements as the market leaders, necessitating the establishment of compliance infrastructure to operate within the U.S. market.
4. The anticipated regulatory framework could have far-reaching implications for the broader cryptocurrency ecosystem, including finance, investing, business, and technology, as it could foster greater institutional adoption while potentially posing increased compliance costs for smaller or foreign issuers.

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