11. Regulatory Trends:

Countries are enacting laws to regulate stablecoin issuance. The future of stablecoin issuance is destined to be a licensed business. Europe has MICA, Hong Kong has just legislated, and the U.S. has also recently passed laws. The essence of legislation is to seize the pricing power of stablecoins.

1) Legislative Intent:

a. Issuers must have sufficient asset backing to prevent empty coins;

b. Standardize anti-money laundering;

c. Meet audit requirements;

d. The essence of legislation: competing for stablecoin pricing power.

2) Country-Specific Situations

2.1. Emerging Markets' Demand for Stablecoins:

a. Primarily due to local currency depreciation and foreign exchange controls, providing a way to purchase dollar-denominated assets.

b. Cross-border remittances: High fees for Mexicans sending money home, while digital currencies offer lower costs.

c. Cases like Russia: Cryptocurrencies can bypass the SWIFT system, and stablecoins could disrupt the traditional nation-based monetary system once widely adopted.

2.2. U.S. Legislative Motivations:

a. The core motive is to consolidate the dollar's dominance, a process likened to establishing a Bretton Woods system for the digital economy.

b. Addressing U.S. Treasury demand; Tether is likely the seventh-largest buyer of U.S. Treasuries globally.

2.3. European Legislative Push:

The MICA bill requires digital asset service providers to obtain licenses by the end of 2024. Institutions like Binance issue compliant euro stablecoins (100% euro-backed). However, MICA has only approved 20 companies to issue stablecoins so far.

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