Stablecoins Facilitate 35 Trillion in Transactions Amid Global Regulatory Uncertainty

Stablecoins have emerged as a critical component of the cryptocurrency ecosystem, facilitating a significant volume of on-chain transactions. Over the past year, these tokens have handled 35 trillion in transaction volume, with an average supply hovering around 195 billion. This substantial activity underscores their role in fueling trades, loans, and cross-border transfers within the crypto market.

However, the classification of stablecoins as "money" has become a contentious issue. IMF Deputy Managing Director Bo Li raised this question at the 2025 World Economic Forum in Davos, highlighting the regulatory uncertainty surrounding stablecoins. Li pointed out that misclassifying stablecoins could significantly impact how banks set reserves and how regulators enforce policies. He also noted that various policy experiments are being conducted globally, but their effectiveness under real stress conditions remains uncertain.

The regulatory landscape for stablecoins is fragmented, with different regions implementing their own rules. The US is advancing with the GENIUS Act, Europe has drafted its own regulatory framework, and Asia is preparing to roll out its Stablecoin Ordinance. While these efforts aim to clarify regulations, they also reveal a lack of global consensus. This patchwork approach could lead to increased costs for businesses and confusion for users, as they navigate different regulatory environments in various jurisdictions.

To address these challenges, the IMF is collaborating with the Financial Stability Board and the Basel Committee to develop more consistent regulatory guidance. The goal is to create a shared framework that regulators worldwide can adopt, reducing the risks associated with fragmented enforcement and ensuring a more cohesive approach to stablecoin regulation.

Despite the regulatory uncertainties, the stablecoin market continues to grow. The supply of stablecoins has surpassed 250 billion, with a significant portion of this capital parked in Bitcoin, awaiting the next market rally. Some analysts have identified chart patterns that resemble early altcoin breakouts, suggesting a potential surge in trading activity across various tokens as market confidence builds. For now, stablecoins remain a central pillar of the crypto infrastructure, facilitating a wide range of financial activities.