Comparison of Stablecoin Legislation: Hong Kong vs. the United States

Written by: Xiao Za Legal Team

In 2014, Tether launched the first mainstream stablecoin USDT (also known as Tether), pegged to the US dollar at a 1:1 ratio, marking the official birth of stablecoins. After going through an initial exploration phase, a rapid growth phase, and a period of crisis and adjustment, stablecoins revived again in the second half of 2023 and entered a rapid growth trajectory. As of July 2025, the total market capitalization of global stablecoins has exceeded $250 billion.

The United States has significant influence in the global financial system, with dollar-pegged stablecoins (such as USDT and USDC) also dominating in terms of market capitalization, circulation, and application scenarios. The U.S. has made beneficial attempts in the regulation of stablecoins, which have a demonstration effect on global markets. On June 17, 2025, the U.S. Senate passed the "Guidance and Establishment of the United States Stablecoin National Innovation Act" (also known as the "Genius Act"), aimed at establishing a regulatory framework for dollar-pegged stablecoins. The bill still needs to be passed by the House of Representatives and signed by the President to take effect.

Hong Kong, as an international financial center, has actively explored and practiced in the field of stablecoins in recent years. The "Stablecoin Bill" was passed in May 2025 and will come into effect on August 1, 2025. Comparing the regulatory legal systems of stablecoins in Hong Kong and the United States has important practical significance and strategic value.

01 Regulatory Framework and Power Structure

Hong Kong, China: Unified central regulation. Regulated by the Hong Kong Monetary Authority (HKMA) with a unified licensing system, covering three types of activities: issuing fiat-backed stablecoins in Hong Kong, issuing stablecoins pegged to the Hong Kong dollar overseas, and promoting fiat-backed stablecoins to the public in Hong Kong. The regulatory scope breaks geographical limits; even if the issuer is located overseas, as long as the stablecoin claims to be pegged to the Hong Kong dollar or is promoted to the Hong Kong market, a license must be obtained.

United States: Federal-state tiered regulation. Issuers with a market capitalization exceeding $10 billion are regulated by federal agencies such as the Federal Reserve and the Office of the Comptroller of the Currency (OCC); smaller market cap issuers are regulated at the state level but must meet federal minimum standards. The bill also establishes the "Stablecoin Certification Review Committee" (SCRC), which is dedicated to assessing the issuance qualifications of large tech companies to prevent them from leveraging market advantages and user data for monopolistic purposes.

02 Types of Stablecoins and Pegging Range

Hong Kong, China: In Hong Kong, "stablecoins" governed by the "Stablecoin Bill" are "designated stablecoins", which are (1) value-backed or referenced to one or more official currencies (such as HKD, USD, etc.); (2) value referenced to accounting units or forms of economic value as designated by the Financial Secretary (i.e., the Hong Kong Monetary Authority) (such as Special Drawing Rights SDR, gold, etc.); (3) other digital value representations specifically designated by the Monetary Authority through a government gazette announcement. Any issuance of designated stablecoins in Hong Kong, or designated stablecoins issued outside of Hong Kong but pegged to HKD, or even the promotion of designated stablecoins to the public in Hong Kong on a global scale, must apply for a license from the Hong Kong Monetary Authority and comply with relevant regulatory requirements.

According to Hong Kong's "Stablecoin Regulation," issuing stablecoins in Hong Kong can be anchored primarily to the Hong Kong dollar, and it also allows for the issuance of stablecoins that are anchored to other fiat currencies such as the US dollar and the Renminbi. Each stablecoin anchored to a different fiat currency needs to apply for a separate license to ensure compliance. Stablecoins can be anchored to a single fiat currency such as the Hong Kong dollar, US dollar, or Renminbi, or they can be anchored to a basket of fiat currencies.

United States: In the United States, stablecoins are "payment stablecoins," meaning ( is a virtual asset used for or designated for payment or settlement, and ) its issuer has the obligation to conduct value conversion, redemption, or repurchase of the stablecoin in a fixed currency; or its issuer claims to maintain or create reasonable expectations regarding the following: ( the value of the stablecoin ) will maintain a constant ratio relative to a certain fixed fiat currency amount.

03 Consumer Protection and Bankruptcy Disposal

Hong Kong, China: The Hong Kong "Stablecoin Regulation" does not explicitly grant stablecoin holders priority claims in the event of the issuer's bankruptcy. The regulatory framework in Hong Kong focuses more on protecting user rights through asset segregation, mandatory audits, and redemption protection mechanisms (redemption at par value within a reasonable time).

United States: The U.S. "Genius Act" clearly stipulates that stablecoin holders have "priority" rights in the event of the issuer's bankruptcy, meaning that the claims of stablecoin holders take precedence over all other creditors. The U.S. also requires issuers to clearly disclose redemption policies and fees, ensuring that users can timely redeem their stablecoins.

04 Market Access and Capital Reserves

Hong Kong, China: The minimum paid-up capital requirement for applying for a stablecoin license in Hong Kong is HKD 25 million, or an equivalent amount in another currency that can be freely converted into HKD or in another currency approved by the Financial Secretary for the implementation of this article. Reserve assets must be held in a separate custody, using highly liquid and low-risk financial instruments (such as cash or high-quality bonds), and ensuring that their value fully matches the face value of the stablecoin. Licensed institutions must process redemption requests at par under reasonable conditions, and it is prohibited to set obstacles or delay the fulfillment of redemption obligations.

United States: The bill does not specify a specific "minimum threshold" amount, but the reserve requirements for highly liquid assets, the federal and state regulatory framework, and compliance and transparency requirements together constitute a high barrier to entry. Each state in the United States has requirements for the management and redemption of customer funds by currency service providers, such as the requirements in New York State: (1) Any stablecoin regulated by the New York Department of Financial Services (NYDFS) must be backed by 100% highly liquid assets as reserves; (2) Issuers must establish clear stablecoin redemption policies, allowing stablecoin holders to redeem stablecoins at face value from the issuer within a short period of time; (3) Reserve accounts must not be confused with the issuer's own assets and must be audited at least once a month by an independent registered accountant in the United States.

05 Anti-Money Laundering and Counter-Terrorism Financing Regulation

Hong Kong: For stablecoin licensees, the regulatory requirements implemented in Hong Kong are as strict as those for traditional financial institutions. The "Stablecoin Ordinance" requires licensees to establish and implement sound and appropriate control systems to prevent and combat potential money laundering or terrorist financing activities related to stablecoin activities. The revised "Anti-Money Laundering and Terrorist Financing (Financial Institutions) Ordinance" in 2022 outlines the control systems for stablecoin licensees, corporations providing virtual asset services to licensees, and recognized institutions to prevent and combat potential money laundering or terrorist financing activities related to stablecoin activities.

United States: The Financial Crimes Enforcement Network (FinCEN) has explicitly stated that cryptocurrencies that can be exchanged for fiat currency should be recognized as "currency" and that stablecoin issuers are subject to anti-money laundering regulations as "money services businesses." Entities engaged in stablecoin activities in the U.S., especially those involved in the transfer of funds and currency exchange, must establish a comprehensive anti-money laundering compliance system and bear anti-money laundering obligations.

06 Written at the End

From regulatory frameworks to practical details, the differences between Hong Kong and the United States in the stablecoin sector are not a matter of "better or worse," but rather beneficial attempts that are both similar and innovative. As cross-border payments develop and the globalization of digital assets accelerates, clarifying the similarities and differences between Hong Kong and the United States in the stablecoin field can help identify potential areas for cooperation and risk points, promoting the healthy and sustainable development of the global stablecoin ecosystem.

The issuer of stablecoins must ensure compliance, applying for licenses and operating legally in accordance with relevant laws. Compliance is a prerequisite for the issuance and operation of stablecoins, not a remedial measure after the fact; compliance is not only a regulatory requirement but also a necessary condition for the issuer of stablecoins to establish a legal relationship with relevant government agencies and users, and to continuously enhance business capabilities.