What are stablecoins?
Stablecoins are a form of cryptoasset typically pegged to a traditional fiat currency, such as a US dollar to maintain a stable value. For example, if pegged to a dollar, one stablecoin would always be worth the equivalent of one US dollar.
The stablecoin market reached roughly US$303 billion in total market capitalisation as of October 2026 and in the EU, around 25 e-money token issuers were authorised under MiCA as of October 2026, with no asset-referenced tokens authorised to date. The two figures together point to a fast-growing market whose regulated core is still narrow: issuance is concentrated in single-currency tokens, and the more complex multi-currency structures remain unapproved.
Is Bitcoin a stablecoin?
No, Bitcoin, like other cryptocurrencies have a volatile value. As stablecoins are pegged to a fiat currency, they are much more “stable”.
Are stablecoins cryptocurrency?
Technically speaking, stablecoins are considered cryptocurrencies whose price is pegged to a reference asset, such as fiat money, exchange-traded commodities, or a more widely-considered cryptocurrency like Bitcoin. Much like the name suggests, the aim of stablecoins is to offer all of the benefits of cryptocurrencies, but without the volatility.
Are stablecoins regulated?
This depends on the region, but stablecoins are now firmly inside the regulatory perimeter in the major markets, with detailed rules either in force or coming into force across 2026 and 2027.
In the EU, stablecoins are regulated under the Markets in Crypto-Assets Regulation (MiCA). Issuers of e-money tokens pegged to a single official currency must be a credit institution or an electronic money institution, and issuers of asset-referenced tokens need authorisation and must hold reserves. The transitional regime ended on 1 July 2026, so unauthorised issuance is no longer permitted.
In the UK, the government has moved beyond announcing its intention and has legislated. The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 were made in February 2026 and bring stablecoin issuance within the FCA’s remit, with the full regime taking effect on 25 October 2027.
In the US, the GENIUS Act was signed into law in July 2025 and sets a federal framework for payment stablecoins, with its main licensing requirement expected to take effect on 18 January 2027.