Stablecoin regulation likely to improve after US elections

Stablecoin adoption grows with enhanced tech and regulations.  

The recent US elections have set the stage for significant advancements in the regulation of digital assets, particularly stablecoins. Yam Ki Chan, Vice President at Circle, emphasised the importance of these developments for the financial markets.  

“The fact is that there has been a lot of conversation in the election about digital assets and crypto in particular,” Chan said. “Overall, we do expect, with either party being in power, that it would be positive for regulation in digital assets, and specifically for stablecoins. So we expect to see some changes there in the coming year.”  

Asia, already a leader in digital asset adoption, is poised for transformative growth. According to Chan, the region’s high trade-to-GDP ratio and upcoming regulations will drive further adoption. “In 2025, both Singapore and Hong Kong are expected to release new regulations focused specifically on stablecoins, creating clarity for digital asset companies, enterprises, and financial institutions,” he explained.  

Beyond regulation, advancements in blockchain technology are making digital assets more accessible. “Over the last couple of years, companies, including Circle, have been building on new technology to help enterprises move into the blockchain more easily,” Chan said.