Stricter Global Regulatory Frameworks for Stablecoins and Their Compliance Implementation (Issue 2 · Week 28, 2026)

01Event Overview

On July 10, 2026, Circle faced criminal charges in Wisconsin and New York for refusing to freeze $380,000 in fraudulent assets, triggering a crisis regarding the compliance of stablecoins. Around the same time, AscendEX announced its closure on July 1 due to the lack of approval under the EU’s MiCA regulations, exposing the compliance risks and financial vulnerabilities associated with exchanges. The implementation of the EU’s MiCA regulations has spurred the rise of compliant stablecoins, with Circle’s EURC seeing record levels of online activity and new address creation in four years.

02Course of the incident

• [2026-06-16] Binance’s prospects for European compliance said to depend on approval progress in France
• [2026-06-18] Trace Finance raises $32 million to build a compliant payment bridge for stablecoins in Latin America
• [2026-06-19] WhiteBIT obtains Austrian MiCA licensing, entering countdown to full European compliance operations
• [2026-07-01] AscendEX announces shutdown and suspension of withdrawals due to lack of EU MiCA licensing and failed funding
• [2026-07-03] Taiwan introduces new rules to strengthen banking oversight; USDC may replace USDT thanks to its compliance advantages
• [2026-07-05] UK’s crypto regulatory framework approved, but licensing process is strict and DeFi regulation remains unclear
• [2026-07-07] AscendEX’s withdrawals stuck in manual review process due to failure to meet MiCA standards, with millions in hot wallet funds at risk
• [2026-07-09] Wisconsin and New York file criminal charges against Circle over refusal to freeze fraudulent assets, sparking debate over stablecoin technical architecture and legal obligations
• [2026-07-09] Five acquisitions in the past month reveal industry shifts, with giants like Samsung and Figure acquiring licensed firms at low prices
• [2026-07-10] Gate US obtains additional money transmission license in Florida, expanding its compliance footprint to 47 U.S. jurisdictions

03Impact Analysis

04Impact Analysis

05Market Price Dimension

The surge in regulatory compliance costs has led to a drastic restructuring of the industry’s capital structure. The proportion of financing for early-stage projects has plummeted, with funding amounts dropping by 90%. Capital is accelerating its flow toward established giants in later stages. This structural change is directly reflected in asset valuations. Five acquisition deals over the past month show that these giants are taking advantage of low prices in a bear market to acquire licensed institutions, with some targets seeing their valuations cut in half. Compliance pressures have also triggered localized liquidity crises. AscendEX was shut down on July 1, 2026, for failing to meet MiCA standards, resulting in millions of dollars in shortfalls in hot wallets and exposing users to the risk of incomplete repayment. Although the market value of compliant euro stablecoins has doubled within a year, they still account for only 0.22% of the dollar-based market, making it difficult to challenge the existing monetary dominance.

06Regulatory Response Dimension

The global regulatory framework shows a divergence between European and American approaches. The implementation of the EU’s MiCA regulations has fueled the growth of compliant stablecoins. EURC, issued by Circle, has obtained a license in France, with both on-chain activity and the number of new addresses reaching four-year highs. However, differences in regulatory enforcement intensity have sparked intense debates. On July 9, 2026, Wisconsin and New York State filed criminal charges against Circle for refusing to freeze fraudulent assets, highlighting the conflict between the technical architecture of stablecoins and legal obligations. In the United States, the scope of compliance continues to expand. Gate US has obtained a money transmission license in Florida, bringing the total number of state-level licenses to 36 and extending compliance coverage to 47 jurisdictions. Although UK regulations allow foreign stablecoins to circulate, the licensing process is stringent, and DeFi regulation remains unclear, keeping compliance costs high.

07Ecosystem Impact Dimension

The crypto industry is undergoing structural maturation, shifting from chaotic innovation to oligopolistic dominance. High compliance costs and capital concentration are stifling early-stage innovation, transforming the industry into a battleground for traditional finance players. At the infrastructure level, Clearstream has added six new crypto asset custody services, covering Ripple, Solana, and others, aiming to meet the needs of institutions for compliant digital asset services under EU MiCA regulations. On the trading side, Polymarket has applied to the NFA for a futures commission merchant license and is seeking CFTC approval to amend rules to support non-full-margin trading, thereby promoting the regularization of the derivatives market. Meanwhile, Optimism and OKX are exploring blockchain compliance and risk management strategies, advocating for control rights at the trading layer to be held by relevant parties and emphasizing proactive risk prevention to help blockchain become part of financial infrastructure.

08Key points to watch going forward

Key Monitoring Points

1. Market Penetration Rate of Compliant Stablecoins under the EU’s MiCA Track changes in the market value share of compliant euro stablecoins such as EURC. Currently, the market value of these compliant euro stablecoins accounts for only 0.22% of the dollar-based market. If this ratio remains below 1%, it indicates that regulatory advantages have not translated into actual market share, raising concerns about the European Central Bank’s warnings regarding excessive issuance.

2. Progress in Obtaining State-Level Licenses and Scope of Judicial Coverage in the U.S. Monitor the number of new money transmission licenses issued to major exchanges. Gate US received approval from Florida on July 10, 2026, expanding its compliant operations to 47 jurisdictions across the U.S. If the number of new jurisdictions added in subsequent quarters slows down or if there are cases of license revocation, it could signal rising compliance costs in the U.S., accelerating industry consolidation among a few large players.

3. Implementation of Stablecoin Freezing Orders and Legal Conflicts Pay attention to the response mechanisms of issuers like Circle to judicial freezing requests. On July 9, 2026, Wisconsin and New York State filed criminal charges against Circle for refusing to freeze assets. An increase in similar criminal charges or court orders requiring technical backdoors could lead to intense conflicts between stablecoin technical architectures and legal obligations, affecting trust in the liquidity of on-chain assets.

4. Closure of Platforms Due to Compliance Failures and Related Repayment Risks Keep an eye on the repayment progress for users affected by the closure of platforms that failed to meet MiCA standards. AscendEX shut down on July 1, 2026, facing a shortfall of millions of dollars in hot wallet funds and difficulties in processing withdrawals through manual review. If such incidents occur frequently and repayment rates fall short of expectations, it will further increase market concerns about the operational stability of platforms during the compliance transition period.

09Related Reads

1. “Refused to Freeze: 380,000 People Charged criminally; Compliance Crisis for Stablecoins Erupts”
2. “Compliance Failures Lead to Shutdown: AscendEX’s Withdrawals Stuck in Manual Review Quagmire”
3. “MiCA Takes Effect, Triggering Compliance Wave: EURC’s On-Chain Data Reaches Four-Year High”
4. “Polymarket Applies for U.S. FCM License to Provide Compliant Margin Trading”
5. “Fundraising Plummets by 90%; Crypto Startups’ Journey from Bedroom Code to Compliance Barriers Over a Decade”
6. “UK’s Crypto Regulatory Framework Approved, but Compliance Costs Remain High”
7. “Compliance Pressures Force Platform Shutdowns; Hot Wallet Deficits Reach Millions of Dollars”
8. “Valuation Cuts by 90%; Giants Seize Compliance Licenses Amid Bear Market”
9. “Gate US Gets Florida Approval; U.S. Compliance Coverage Expands to 47 Jurisdictions”
10. “Compliance-Driven Market Value Soars 128%, Yet Still Can’t Challenge Dollar Dominance”
11. “Compliance Erodes Innovation: How the Crypto Industry Has Become a Copy of Traditional Finance”
12. “Deutsche Börse’s Subsidiary Adds Six New Currencies: New Path for Institutional Compliance under MiCA Framework”
13. “Optimism and OKX Discuss Blockchain Compliance and Risk Management”