US stablecoin rules split global liquidity with Europe, CertiK warns
Overview
A recent report highlights concerns regarding the impact of US stablecoin regulations under the GENIUS Act on global liquidity. The new rules are reportedly creating divisions between the United States and Europe, leading to the formation of regional markets and raising the possibility of cross-border friction.
What Happened
According to the report, the implementation of the GENIUS Act in the United States is causing a split in global liquidity related to stablecoins. This fragmentation is resulting in the establishment of distinct regional markets, which may complicate international transactions and interactions. The report suggests that such developments could lead to increased tensions between the US and Europe, as differing regulatory environments may create barriers to seamless cross-border operations.
Impact on the crypto market
- The division in global liquidity may hinder the efficiency of stablecoin transactions across borders.
- Regional market formations could limit opportunities for investors and businesses operating internationally.
- Potential cross-border friction may lead to increased regulatory scrutiny and compliance challenges for crypto entities.
- The divergence in stablecoin regulations could impact the overall adoption and use of digital currencies in different regions.
- Companies may need to adapt their strategies to navigate the evolving regulatory landscape in both the US and Europe.
Updated: 12/4/2025, 2:28:03 PM
