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Stablecoin Regulatory Status

Definition

Stablecoin regulatory status refers to how governmental and financial authorities classify and oversee stablecoins, which are cryptocurrencies designed to maintain a stable value relative to a fiat currency or other assets. This classification determines the legal obligations for issuers and operators, including requirements for reserves, audits, and anti-money laundering (AML) compliance. Different jurisdictions are developing varied approaches, impacting market stability and consumer protection. It addresses whether stablecoins are considered securities, commodities, or payment instruments.