Regulators Build Global Stablecoin Firewall as International Transactions Come Under Scrutiny
Regulators around the world are quietly building a global firewall for stablecoins, granting them authority to identify, freeze, and redirect cross-border transfers. The new rules will affect anyone engaged in international transactions using tokens pegged to major currencies like the US dollar or pound sterling.
The U.S. Treasury has proposed regulations under the GENIUS Act, which aims to make intermediaries and issuers traceable. The proposal was paired with enforcement actions, including sanctions against crypto exchanges allegedly providing financial help to Iran's Islamic Revolutionary Guard Corps.
Meanwhile, the UK is implementing a two-tier system for stablecoin regulation. Firms authorized after October 25, 2027, will have to comply with rules under the Financial Services and Markets Act, while 'systemic' issuers will be subject to direct oversight by the Bank of England and FCA.