Stablecoin Regime

Definition ∞ A Stablecoin Regime is the regulatory and operational framework governing the issuance, management, and backing of stablecoins within a particular jurisdiction or financial system. This regime defines rules for reserves, auditing, and consumer protection. It aims to ensure the stability and reliability of these pegged digital assets.
Context ∞ The development of a comprehensive stablecoin regime is a top priority for global financial regulators, seeking to mitigate systemic risks and protect consumers. Discussions center on balancing innovation with oversight, with various jurisdictions proposing distinct approaches to reserve requirements, redemption mechanisms, and licensing for stablecoin issuers.