

Cryptocurrency
Japan’s New Stablecoin Framework Could Spur US To Act – Crypto News
As Japanese banks get set to issue stablecoins under new legislation, the US’ lack of regulatory clarity in the segment is one hurdle blocking institutions in the country from doing the same.
Japan in June 2022 passed a legal framework for stablecoinswhich took effect Thursday.
The law requires that stablecoins — typically backed by one or more reserve assets — must be pegged to the yen or another legal tender and guarantee redemption to the holder at face value. It also confines the issuance of stablecoins to licensed financial institutions, such as registered banks, money transfer agents and trust companies.
The country’s step to bridge the gap between TradFi and DeFi with this initiative will benefit everyone in the long run, said David Tawil, co-founder of crypto fund ProChain Capital.
“In the US, most depositors, individual and business, have the benefit of free [automated clearing house] transfers intra-national,” he told Blockworks. “But Japan’s initiative is a first step toward international frictionless, free money transfers.”
Updating from decades-old payment systems to cheaper and faster distributed ledger technology will always be a win for the customer, according to Jeff Embry, managing partner at crypto hedge fund Globe 3 Capital.
“The key will be making sure these stablecoins utilize a trustless, immutable and transparent blockchain versus being in control of one bank or one government like a CBDC would,” Embry added.
Tokyo-based GU Technologies in March Launched a public blockchain — called Japan Open Chain — as a way to allow three Japanese financial institutions to experiment with issuing stablecoins complying with the country’s laws. The stablecoins would be compatible with Ethereum wallets via Metamask, for example.
Embry said that if Japanese banks only look to create their own stablecoins, the stablecoin ecosystem will struggle.
“We like to see stablecoins originate outside of the bank ecosystem bubble, as that is where true, immutable, transparent stablecoin innovation and adoption will prosper,” the Globe 3 Capital executive noted.
What would it take for US banks to issue stablecoins?
While regulations would be key for US banks to issue stablecoins, proposed bills on this subject stay in flow,
Recent hearings crypto regulation could be two or three years off by the House Financial Services and Agriculture committees, according to Compass Point Research & Trading analysts Chase White and Joe Flynn.
“What we saw in these hearings is that members of Congress do not agree intraparty, much less interparty, on the basic tenets of even stablecoin legislation, which is seen by many observers as low-hanging fruit relative to comprehensive crypto legislation,” White and Flynn wrote in a research note last week.
Meanwhile, comments from regulators seem to contradict one another amid a war to regulate the crypto space, CFTC Chairman Rostin Behnam said in March that stablecoins such as tether (usdt) could be considered commodities, while SEC chairman Gary Gensler has claimed every crypto asset, besides bitcoin, could be a security.
Aside from a lack of movement and clarity from legislators and regulators, stablecoin adoption might be slow for big US banks who want customers to continue paying wiring fees.
“Banks are slow to adopt because they are the middlemen that blockchain eliminates,” Embry said. “Once customers see the huge benefits of using stablecoins the demand for them will be so great the banks won’t have a choice but to adopt them.”
JPMorgan offers JPM Coin, a permitted payment rail and deposit account ledger for clients to transfer US dollars held with JPMorgan within the bank’s system. But Embry called the system more of a tool for clients than a true open-sourced blockchain stablecoin.
JPMorgan and consulting firm Oliver Wyman said in a joint studies published earlier this year that using bank-issued deposit tokens to transfer value across chains is safer than using stablecoins.
Similar to his wish for Japanese institutions, Embry said he hopes US banks ultimately adopt stablecoins from third-party innovators rather than creating their own.
Tether’s stablecoin market capitalization has surged in recent months — standing at nearly $83.3 billion on Thursday. The market cap of competing stablecoins USD Coin (USDC) was just below $29 billion.
“I think at some point, some country or countries around the world are going to lap us on this, and that’s when we’re going to get into gear here,” Tawil said of US stablecoin adoption. “We don’t do anything in this country until we’re under threat. Debt ceiling, case and point.
Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter now.
Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief,
Can’t wait? Get our news the fastest way possible. Join us on Telegram and follow us on google news,
-
Blockchain1 week ago
Ripple and Ctrl Alt Team to Support Real Estate Tokenization – Crypto News
-
others1 week ago
EUR/USD recovers with trade talks and Fed independence in focus – Crypto News
-
Technology1 week ago
Fed Rate Cut Odds Surge As Powell’s Future Hangs In The Balance – Crypto News
-
Cryptocurrency1 week ago
It’s a Statement, Says Bitfinex Alpha – Crypto News
-
Technology1 week ago
Fed Rate Cut Odds Surge As Powell’s Future Hangs In The Balance – Crypto News
-
Business1 week ago
XLM Is More Bullish Than ETH, SOL, And XRP, Peter Brandt Declares – Crypto News
-
Business1 week ago
Pepe Coin Rich List June 2025: Who’s Holding Highest PEPE as it Nears Half a Million Holders? – Crypto News
-
Metaverse1 week ago
Why voice is emerging as India’s next frontier for AI interaction – Crypto News
-
others1 week ago
Top Crypto Exchange by Trading Volume Binance Announces Airdrop for New Ethereum (ETH) Ecosystem Altcoin – Crypto News
-
Cryptocurrency1 week ago
Bitcoin trades near $119K after new all-time high; Coinbase rebrands wallet to ‘Base App’ – Crypto News
-
Cryptocurrency7 days ago
Anarchy, crime and stablecoins – Blockworks – Crypto News
-
Cryptocurrency1 week ago
Stellar [XLM] bulls exhausted after rally – Is a pullback nearby? – Crypto News
-
Technology1 week ago
V Guard INSIGHT-G BLDC fan review: Cool performer with a premium look – Crypto News
-
Cryptocurrency1 week ago
Fed’s Hammack Raises Inflation Concerns Amid Push For Interest Rate Cut – Crypto News
-
Cryptocurrency1 week ago
1inch price forecast: 1INCH hits 7-month high after double digit gains – Crypto News
-
Cryptocurrency1 week ago
1inch price forecast: 1INCH hits 7-month high after double digit gains – Crypto News
-
others1 week ago
VanEck Details Key Drivers Boosting Bitcoin Price, Including Corporate Treasury Demand, ETF Flows and More – Crypto News
-
Business1 week ago
XRP Lawsuit Update: Ripple Paid $125M in Cash, Settlement Hinges on Appeal – Crypto News
-
Technology6 days ago
“Decentralized Ponzi Scheme”- Gold Bug Peter Schiff Slams Landmark Crypto Bills – Crypto News
-
Cryptocurrency5 days ago
Shytoshi Kusama Breaks Silence on New SHIB AI Whitepaper and Transformed Future – Crypto News
-
Technology1 week ago
XLM Price Forecast: Why Stellar Lumens May Crash After 80% Rally in Last 7 Days – Crypto News
-
Cryptocurrency1 week ago
Hypercharged Exposure to XRP and Solana Now Available With These Two ETFs – Crypto News
-
Blockchain1 week ago
BitMine Shares Rallied After Peter Thiel Investment. – Crypto News
-
others1 week ago
Scammer Drains $10,000,000 From IRS in International Tax Fraud and Identity Theft Scheme: DOJ – Crypto News
-
Business1 week ago
Ethereum Price Prediction- Bulls Target $3,700 As ETH Treasury Accumulation Soars – Crypto News
-
others1 week ago
GBP/USD rallies on US PPI dip and Trump’s potential Powell removal – Crypto News
-
others1 week ago
GBP/USD rallies on US PPI dip and Trump’s potential Powell removal – Crypto News
-
Cryptocurrency1 week ago
Russia’s $85 Billion Sberbank to Launch Crypto Custody Services – Crypto News
-
De-fi6 days ago
BNB Chain Teases New Blockchain with Privacy Features to Compete With Crypto Exchanges – Crypto News
-
Cryptocurrency6 days ago
US House passes three key crypto bills; market reaction muted as Bitcoin dips – Crypto News
-
De-fi6 days ago
Crypto Market Cap Hits $4 Trillion Milestone as US House Passes Landmark Bills – Crypto News
-
Cryptocurrency5 days ago
California Sheriffs Believe 74-Year-Old’s Disappearance Linked to Son’s Crypto Fortune – Crypto News
-
Cryptocurrency5 days ago
Altseason heats up, but Bitcoin could face short-term pullback – How? – Crypto News
-
Blockchain3 days ago
Institutional Demand Surges As Ethereum Sets New Inflow Records – Crypto News
-
De-fi1 week ago
DeFi TVL Surges Past $126B, Up Over 45% Since April – Crypto News
-
De-fi1 week ago
Solana RWA Growth Outpaces Ethereum in 2025 – Crypto News
-
Cryptocurrency1 week ago
Nothing Burger or Crypto Catalyst? – Crypto News
-
Metaverse1 week ago
Nvidia’s Jensen Huang says AI ‘fundamental like electricity’, praises Chinese models as ‘catalyst for global progress’ – Crypto News
-
Business1 week ago
$800 Billion JPMorgan To Rival Tether, Circle, and Ripple In Stablecoin Race – Crypto News
-
others1 week ago
Crypto Exchange Hack: BigONE Users Lose A Massive $27 Million In Recent Exploit – Crypto News
-
De-fi1 week ago
U.S. Marshals Peg Federal Bitcoin Holdings at 28,988 Tokens Worth $3.4 B – Crypto News
-
De-fi7 days ago
U.S. House Passes Clarity, GENIUS, and Anti-CBDC Acts With Historic Bipartisan Support for Crypto – Crypto News
-
Technology7 days ago
Malicious code found in fake coding extensions used to steal crypto – Crypto News
-
Cryptocurrency6 days ago
XRP Price Spikes to Record Highs As Momentum Signals Extended Gains – Crypto News
-
Technology6 days ago
Meta’s AI Studio: Red flag or red herring? – Crypto News
-
Blockchain6 days ago
Why Bitcoin self-custody is declining in the ETF era – Crypto News
-
Technology6 days ago
Breaking: GENIUS Act Becomes First Major Crypto Legislation as Trump Signs Bill – Crypto News
-
De-fi6 days ago
Crypto Market Cap Hits $4 Trillion Milestone as US House Passes Landmark Bills – Crypto News
-
Cryptocurrency5 days ago
Arthur Hayes-linked wallet bags $2M worth of AAVE and LDO in an OTC deal – Crypto News
-
others4 days ago
Why Is The Crypto Market Rising Today? – Crypto News