U.S. Endorses Singapore's Stablecoin Model as Global Compliance Blueprint

The U.S. Treasury has praised Singapore's leadership in adopting regulated stablecoins and digital assets, signaling a strategic alignment with the city-state's approach to balancing innovation and compliance. During the APEC 2025 summit in Gyeongju, South Korea, Treasury Secretary Scott Bessent commended Prime Minister Lawrence Wong for Singapore's progress in integrating U.S. dollar-based stablecoins into its financial system, as reported by Cointelegraph. The discussions emphasized collaboration on curbing illicit crypto activity, enforcing energy sanctions, and fostering blockchain innovation within a compliant framework, according to Blockonomi.

Singapore's digital finance model has drawn international attention for its ability to harmonize technological advancement with regulatory rigor. The Monetary Authority of Singapore (MAS) has positioned stablecoins as a bridge between traditional banking and decentralized finance, with local banks testing blockchain-based settlement systems and regulated issuers expanding their reach, the Blockonomi piece noted. The U.S. Treasury highlighted Singapore's success in maintaining strict compliance standards while encouraging innovation, a model that Washington views as a blueprint for responsible global adoption, the Cointelegraph report added.

The growing stablecoin market, now valued at over $295 billion, is shifting toward an "infrastructure war," according to a Yahoo Finance report based on research by Alchemy Pay and Gate Research. Competition has intensified as major players like Tether, Circle, and Stripe vie for dominance in payment settlement networks, with Tether's USDT holding 60.66% market share while Circle's USDC has surged this year. JPMorgan analysts attribute this growth to USDC's compliance with Europe's Markets in Crypto-Assets (MiCA) framework and the U.S. GENIUS Act, a point highlighted in coverage by CoinDesk and confirmed by TradingView.

Regulatory frameworks are reshaping the sector. The GENIUS Act, enacted in July 2024, prohibits stablecoin issuers from paying interest to holders, treating them as digital cash rather than investment products, as reported by TradingView. Meanwhile, MiCA's implementation has boosted USDC's appeal in Europe, while Tether's lack of compliance has led to delistings on some exchanges, according to coverage by TronWeekly. Circle's Cross-Chain Transfer Protocol (CCTP) further strengthens USDC's position by enabling secure, non-custodial transfers across blockchains like Solana and Base, a point also noted in the Yahoo Finance report.

The U.S. and Singapore also discussed broader financial cooperation, including efforts to combat transnational crime and enforce sanctions on Russian and Iranian oil purchases. Bessent emphasized the importance of real-time data sharing to trace illicit crypto flows, underscoring how digital finance has become central to international economic security, the Blockonomi article noted.

As stablecoin adoption accelerates, the focus is shifting from token dominance to infrastructure control. Citigroup and Western Union are expanding stablecoin payment networks, while Revolut recently introduced zero-fee, 1:1 USD-to-stablecoin conversions, as reported by Cointelegraph and in a Blockonomi report. These developments reflect a maturing market where compliance and institutional adoption drive growth, with Singapore's regulatory model serving as a key reference point for global policymakers.