U.S.-UK Cooperation on Stablecoin Regulation (Issue 1 · Week 29, 2026)

01Event Overview

On July 10, 2026, Wisconsin and New York filed criminal charges against Circle for refusing to freeze $380,000 in fraudulent assets, triggering a crisis regarding the compliance of stablecoins. This incident highlighted the intense conflict between the technical architecture of stablecoins and legal obligations, further increasing regulatory uncertainty. Meanwhile, the implementation of the EU’s MiCA regulations has promoted the rise of compliant stablecoins, with the on-chain activity of EURC issued by Circle reaching its highest level in four years. The global regulatory landscape is evolving from conflicts among individual jurisdictions toward multilateral compliance standards, reshaping industry rules.

02Course of the incident

• [2026-07-09] The transition period for the EU’s MiCA regulation came to an end. Rising compliance requirements led to 90% of institutions exiting the market. Germany established itself as a key player with 57 issued licenses, encouraging banks and exchanges to jointly build infrastructure for digital assets.
• [2026-07-10] Wisconsin and New York State filed criminal charges against Circle for refusing to freeze fraudulent assets, sparking a fierce debate over the technical architecture of stablecoins and their legal obligations, and triggering a compliance crisis in this sector.
• [2026-07-10] The full implementation of the EU’s MiCA regulation spurred the rise of compliant stablecoins. EURC, issued by Circle, obtained a license in France, filling a gap in the market. Both the level of activity on the chain and the number of new addresses reached four-year highs.

03Impact Analysis

04Impact Analysis

05Market Price Dimension

The process of regulating stablecoins is significantly reshaping asset pricing logic and liquidity distribution. On July 10, 2026, the implementation of the EU’s MiCA regulations led to a surge in demand for compliant stablecoins. Circle’s EURC saw both the number of active addresses and new addresses reach four-year highs on the blockchain, indicating that compliant assets are receiving substantial favor from market funds. Meanwhile, traditional financial giants are accelerating their entry into this space. Vanguard plans to integrate $12 trillion in asset management assets into tokenization and stablecoin infrastructure, injecting expectations of long-term capital inflows into the market. However, compliance costs have also caused localized liquidity contraction. AscendEX was shut down on July 1, 2026, for failing to meet MiCA standards, resulting in a shortfall of millions of dollars in hot wallets and exposing users to repayment risks, highlighting the vulnerability of non-compliant platforms in terms of price discovery and liquidity provision.

06Regulatory Response Dimension

The United States, the United Kingdom, and other major global jurisdictions are shifting from single-regulation approaches to models that emphasize coordinated efforts and strict law enforcement. On July 9, 2026, Wisconsin and New York filed criminal charges against Circle for refusing to freeze fraudulent assets, sparking intense debates over the technical architecture of stablecoins and their legal obligations, signaling an intensified crackdown by regulators on the “controllably anonymous” nature of stablecoins. In the EU, the end of the MiCA transition period has raised compliance barriers dramatically, leading to the exclusion of 90% of institutions. Germany has established itself as a leader with 57 licenses, encouraging banks and exchanges to jointly build digital asset infrastructure. Japan is building a conglomerate-level compliant ecosystem through support from its prime minister, investments of nearly $500 million by SBI, and pilot programs for stablecoin payments, aiming to capture the benefits of compliance. Additionally, CME and ICE announced the launch of GPU futures on July 10, 2026, using stablecoin settlement and on-chain verification to address fluctuations in computing power prices, marking a deep integration of traditional derivatives markets with stablecoin infrastructure under stringent regulation.

07Ecosystem Impact Dimension

Compliance requirements are accelerating the transformation of the crypto ecosystem from an informal structure to one that is more institutionalized, forcing restructurings in both technical architecture and business models. On July 15, 2026, the Ethereum Foundation team founded EthSystems, a company focused on developing privacy-compliant technologies for banks and asset management firms on Ethereum, reflecting the infrastructure layer’s response to compliance needs. In the realm of RWA, LayerZero and Centrifuge are using a hub-and-spoke model to resolve the conflict between compliance and speed in the $33 billion tokenization market, improving cross-chain compliance efficiency. Metaplanet and Progmat collaborated on July 10, 2026, to research digital credit, integrating resources from Bitcoin, stablecoins, and tokenized securities to create an efficient and transparent credit market infrastructure. Nevertheless, compliance pressures have also led to the closure of some platforms. For example, AscendEX’s withdrawal processes became stuck in manual review procedures, putting users at risk of bankruptcy and accelerating industry consolidation. Overall, stablecoins are emerging as a key compliance bridge connecting traditional finance and the crypto ecosystem, driving the reshaping of industry rules.

08Key points to watch going forward

1. The intensity of judicial cooperation between the U.S. and the UK: Closely monitor the progress of criminal charges arising from Circle’s asset freeze. If the two countries fail to reach a joint enforcement memorandum regarding stablecoin freezing obligations by July 15, 2026, or if Circle faces additional cross-jurisdictional lawsuits, it will directly impact the tone of regulatory cooperation between the U.S. and the UK, leading to soaring compliance costs.

2. The spillover effects of EU MiCA compliance: Track online activity data on the EURC chain as well as changes in the number of new addresses. If relevant EURC indicators show a significant decline on a month-on-month basis after July 10, 2026, or if the number of institutions holding German licenses decreases, it will indicate a waning of the compliance benefits in the EU, potentially forcing the U.S. and the UK to reevaluate the competitiveness and attractiveness of their regulatory frameworks.

3. The progress of traditional asset management firms entering this space: Pay attention to Vanguard’s specific timeline for integrating its $12 trillion in assets into tokenization and stablecoin infrastructure. If the firm fails to announce any substantial cooperation cases after July 9, 2026, or if there is a halt in executive hiring, it will weaken the traditional financial drivers behind regulatory cooperation on stablecoins in the U.S. and the UK, affecting market confidence.

4. The industry’s compliance elimination rate: Monitor the number of platforms shut down due to failure to meet MiCA standards, as well as user compensation situations. If cases like AscendEX trigger a chain reaction, resulting in more platforms shutting down due to compliance pressures before July 15, 2026, along with millions of dollars in funding gaps, it will intensify concerns about the security of stablecoin infrastructure and push the U.S. and the UK to accelerate regulatory coordination.

09Related Reads

1. “Refused to Freeze: 380,000 People Charged criminally; Compliance Crisis for Stablecoins Erupts”
2. “MiCA Takes Effect, Triggering a Compliance Wave: EURC’s On-Chain Data Reaches Four-Year High”
3. “Asset Management Giants Reverse Course: $12 Trillion Involved in Crypto Infrastructure”
4. “Only 12% of MiCA Regulations Still in Effect: Germany Leads with 57 Licenses”
5. “Compliance Pressures Force Platforms to Shut Down; Millions in Shortage for Hot Wallets”
6. “Top Executives Back the Cause, SBI Invests $500 Million, Rosen Opens Doors: Japan Seizes the Opportunity in Compliance”
7. “The Era of Computing Power Futures: How CME and ICE Are Reshaping the Trillion-Dollar GPU Market”
8. “Ethereum Foundation Team Founds Privacy-Compliant Company EthSystems”
9. “$33 Billion RWA Market: LayerZero and Centrifuge Solve the Paradox of Compliance Speed”
10. “Metaplanet and Progmat Collaborate on Digital Credit Research”
11. “Compliance Failures Lead to Shutdown: AscendEX’s Withdrawals Stuck in Manual Review Process”