Regulators around the world made significant moves on digital asset policy this week. In the United States, a new stablecoin law known as the GENIUS Act requires payment tokens to be fully backed by fiat currency, and a companion bill clarifying when crypto assets are securities or commodities has advanced in Congress. Federal prosecutors also targeted investors in Tornado Cash, signalling harsher enforcement. Across Europe, the MiCA framework has taken effect and large exchanges such as Coinbase and Gemini are close to receiving licences to offer services across the bloc, although some officials worry about a race to the bottom in regulatory standards. Meanwhile, Hong Kong is rolling out a licensing regime for stablecoin issuers while mainland China maintains its ban on crypto trading. Together, these developments show policymakers trying to balance innovation with clear rules and consumer protection.
