WEEKLY CRYPTO NEWS: STABLECOIN RULES ADVANCE AS CRYPTO ADOPTION REMAINS RESILIENT

The crypto market continued to evolve on several fronts this week, with regulators, investors and financial institutions responding to a rapidly changing digital asset landscape. The European Central Bank called for stronger oversight under MiCA. Global crypto adoption remained resilient despite the 2026 market downturn, Russia outlined plans to bring new licensed crypto market participants into its regulatory framework, and new ECB research showed that DeFi interest rates can move independently of traditional monetary policy. Together, these developments highlight how crypto adoption, regulation and financial market dynamics are increasingly developing alongside one another.

Stablecoin demand grows with stronger protections

Stablecoins are gaining attention in the U.S. as regulators develop the rules governing their reserves and bank issuance, while new research suggests that consumer interest could increase significantly if stronger safeguards are available.

Visa’s Money Travels 2026 study found that 36% of surveyed U.S. adults would consider using stablecoins. That figure rose to 45% when stablecoins were offered through an existing financial provider and reached 56% when hypothetical bank-level fraud protection and deposit insurance were added. The findings measure stated consumer interest rather than actual stablecoin adoption, and Visa stressed that stablecoins are not currently covered by FDIC deposit insurance.

Trust in the provider also emerged as an important factor. Visa found that 64% of U.S. respondents placed greater importance on the company providing a payment service than on the underlying technology. The research also highlighted persistent security concerns, with respondents reporting exposure to scams involving international transfers, AI-generated messages and impersonation attempts.

Meanwhile, U.S. banking institutions are exploring their own stablecoin initiatives as the GENIUS Act moves towards implementation.

U.S. Federal Reserve moves forward with GENIUS Act rules

The regulatory side of the stablecoin market is also advancing. The Federal Reserve released two proposed rules on 24 September to implement parts of the GENIUS Act for payment stablecoin issuers under its supervision.

One proposal would establish requirements for reserve assets, capital and risk management. Covered issuers would need to maintain sufficient permissible assets to back their outstanding payment stablecoins, with eligible assets including short-term U.S. Treasury bills and other high-quality liquid assets. The framework would also establish requirements for firms safeguarding stablecoin reserves.

A second proposal would create an approval process for insured state member banks seeking to establish subsidiaries that issue payment stablecoins. Banks would need to submit business plans, financial information and other documentation for Federal Reserve review. Once an application is considered substantially complete, the Fed would generally have 120 days to decide on the statutory framework.