Editor - Jackie
JPMorgan’s CFO warned that stablecoins could turn into a form of regulatory arbitrage if they are not supervised under comparable standards.
The comment shows that even as major banks study issuance and blockchain payments, they remain worried about uneven prudential treatment.
The broader issue is whether stablecoins will be regulated as serious financial infrastructure or allowed to operate under lighter rules than banks.
Jeremy Allaire said a yuan-backed stablecoin could emerge within three to five years.
He also said USDC circulation rose 72% year over year to $75.3 billion at the end of 2025.
The bigger message is that large issuers increasingly see local-currency stablecoins as part of the next growth phase.
Global coordination on stablecoin standards is losing momentum - Global rulemaking is losing momentum as officials warn stablecoin adoption is moving faster than international standards.
Markets still see the U.S. stablecoin bill facing a rough path - Markets still see a rough path for the U.S. stablecoin bill, with yield rules still viewed as one of the biggest political sticking points.
Yuan stablecoins are entering the strategic conversation - Yuan-backed stablecoins are moving into the strategic conversation as issuers and policymakers pay more attention to local-currency competition and Hong Kong’s licensing push.
JPMorgan analysts said negotiations appeared close to a breakthrough as lawmakers worked toward resolving the stablecoin-yield dispute.
That makes this one of the most important market-facing signals in the latest U.S. policy cycle.
A final deal would have major implications for issuance, distribution, and rewards models.
The FCA opened consultation on the U.K.’s future crypto regime and explicitly included issuing qualifying stablecoins as a regulated activity.
Firms will be able to begin applications in September 2026 before the regime takes effect in October 2027.
The consultation shows the U.K. is giving stablecoin issuance a defined place inside its formal regulatory framework.
Banks are pushing back hard on the White House’s stablecoin yield view - Banks are pushing back against the White House’s yield stance, keeping deposit flight and rewards rules at the center of the U.S. stablecoin debate.
Lawmakers returned to Washington with stablecoin rewards still unresolved - U.S. lawmakers returned to a critical week of talks with stablecoin rewards still unresolved and central to how future legislation may treat distribution and marketing.
The White House says progress is being made on CLARITY, but not everything is settled - The White House said progress is building on CLARITY talks, though key parts of the bill still have not been fully resolved.
South Korea’s central bank nominee is open to won stablecoins - South Korea is taking won stablecoins more seriously, with its central bank nominee backing their place in the future stablecoins mix alongside CBDCs and deposit tokens.
South Korea still appears to favor a central-bank-led digital system - South Korea still appears to favor a tightly supervised, central-bank-led digital system where stablecoins play a narrower role.
Corporate stablecoin holdings could face new disclosure rules - Companies may soon face new disclosure rules for material stablecoin holdings, a change that could shape treasury policy and business adoption.
FASB is reviewing whether coins like USDC can be treated like cash - FASB is reviewing whether coins like USDC should be treated more like cash in company reporting, which could influence how firms present stablecoin exposure.
A draft compromise on stablecoin yield was expected this week - A draft compromise on stablecoin yield was expected to help break one of the biggest remaining fights in U.S. crypto legislation.
Societe Generale-FORGE pushed its dollar stablecoin into MetaMask through a distribution move tied to a mainstream crypto wallet.
The rollout was framed around access to millions of wallet users rather than a narrow institutional audience.
It shows a major bank expanding stablecoin reach through consumer-facing Web3 infrastructure.
ClearBank was reported to be linking institutional clients to Circle Mint for both EURC and USDC.
The setup ties regulated European banking infrastructure more directly to stablecoin issuance and settlement rails.
It also reflects growing bank interest in integrating stablecoins through compliant channels.
Circle says it will not freeze USDC without legal process - Circle said it will only freeze USDC when ordered by courts or law enforcement, drawing a hard line against discretionary intervention.
WLFI expands USD1 supply again after recent repayment claims - WLFI expanded USD1 supply again as fresh supply activity showed the Trump-linked stablecoin is still moving quickly.
Circle sees South Korea as a distribution opportunity, not a local stablecoin market - Circle is treating South Korea as a distribution market for dollar stablecoins rather than a place to launch a won-pegged token.
Stables and MANSA want to connect Asia’s fragmented stablecoin corridors - Stables and MANSA want to connect Asia’s fragmented corridors by building a liquidity layer for fiat-to-USDT payments across the region.
Tether’s political orbit is getting more visible in Washington - Tether’s Washington orbit is becoming more visible as political spending around U.S. crypto policy picks up.
Tether.Wallet supports USDT, USAT, XAUT, and Bitcoin.
The wallet works across Ethereum, Polygon, Plasma, Arbitrum, and Lightning.
It also uses email-like identifiers to make sending assets easier and more readable for users.
Visa will operate as an anchor validator on Tempo, the stablecoin and payments-focused blockchain backed by Stripe and Paradigm.
The move adds large-scale institutional credibility to stablecoin-native payment infrastructure.
It also shows major payments companies leaning further into blockchain settlement rails.
Circle is considering a token and proof-of-stake path for Arc Network - Circle is exploring a future token and proof-of-stake model for Arc as it works toward a 2026 mainnet beta.
Fireblocks is bringing native stablecoin yield tools into institutional workflows - Fireblocks is bringing stablecoin yield directly into institutional treasury workflows through onchain strategies powered by Aave and Morpho.
👋 That’s your stablecoin scoop for the week!
Until next time — AllScale Weekly
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