For years, stablecoins have occupied an uncertain space between innovation and regulation. While adoption has grown rapidly, questions around oversight, transparency, and trust have prevented many financial institutions from fully embracing the technology.
That may be changing.
In Episode 17 of the Reshaping Finance podcast, “Stablecoins at a Turning Point: Regulation, Trust and What Comes Next,” I talk with Patrick Fuller, Counsel at Debevoise & Plimpton, and Ed DeMarco, Managing Director, ProSight Financial Association, about the evolving stablecoin landscape and what it means for finance professionals.
According to Fuller, the industry has reached a significant milestone. “Stablecoins are moving from a fragmented, lightly supervised space featuring a lot of regulatory uncertainty into a defined regulatory environment with clear rules and standards. With the [Guiding and Establishing National Innovation for U.S. Stablecoins Act], we now have clarity on what a payment stablecoin is, who can issue them, and what standards apply — particularly around reserves, disclosure, and supervisory oversight.”
With new regulatory frameworks emerging in the US, Europe, the UK, Singapore, Japan, and other major financial markets, stablecoins are increasingly being viewed not as speculative crypto assets, but as legitimate components of future financial infrastructure.
“This is not just crypto sentiment; stablecoins are moving closer to regulated financial infrastructure. If the market is becoming more institutional, the obvious question is what problem regulators are really trying to solve,” said DeMarco.
The answer is increasingly clear: Regulators are focused on creating a global framework that promotes transparency, protects users, mitigates financial crime risks, and enables innovation to develop within a trusted environment.
Building trust through transparency and oversight
As stablecoins mature, the conversation is shifting from innovation to accountability.
As we shift from experimentation to disciplined financial infrastructure, stablecoins are now aligning with traditional finance standards — in reserves, reporting, and assurance — and moving into payments, settlement, and liquidity flows.
This evolution represents a fundamental change. Instead of relying solely on issuer claims, market participants increasingly expect evidence, transparency, and independent verification.
Reserve disclosures, attestation services, assurance examinations, and governance frameworks are becoming essential components of the ecosystem.
For finance and accounting professionals, these principles are familiar. Strong controls, reliable reporting, and independent assurance have long underpinned confidence in financial markets. Stablecoins are now beginning to operate under many of those same expectations.
The growing emphasis on accountability is why regulatory frameworks are so important. With consistent standards, market confidence will strengthen.
One of the biggest barriers to institutional adoption of frameworks has been uncertainty. Financial institutions have historically faced unclear rules surrounding stablecoin issuance, supervision, and risk management.
The introduction of the GENIUS Act in the US marks a major step forward because it establishes expectations for reserve management, reporting, disclosures, and regulatory oversight. Similar developments are taking shape across global markets, signalling growing acceptance of stablecoins within the financial system.
The challenge of scaling frameworks and trust globally
While regulation is progressing, important questions remain.
Stablecoins are designed to move seamlessly across borders, but regulatory frameworks remain jurisdiction specific. Organisations must navigate differing requirements around reserves, disclosures, compliance, and reporting.
As global adoption increases, consistency and comparability will become increasingly important. Financial institutions need confidence that stablecoins issued in different jurisdictions are subject to robust standards and that reporting and assurance practices can be relied upon across markets.
The challenge is no longer purely technological; it's about creating trust that can scale globally.
What good looks like
For banks, payment providers, and finance leaders considering stablecoin adoption, success will depend on applying proven financial disciplines, such as:
Clear reserve governance and one-to-one backing
Transparent and frequent disclosures
Independent assurance and examinations
Robust anti-money laundering and sanctions controls
Effective liquidity management
Operational readiness for redemption requests
Strong governance and risk management frameworks
In many respects, these requirements mirror the expectations placed on traditional financial institutions. The difference is that they must now operate in a digital, always-on environment.
Trust, regulation, and the role of accounting and finance professionals
The introduction of clearer regulatory frameworks represents a turning point for stablecoins, helping address longstanding concerns around trust, risk management, and accountability.
Regulatory clarity is creating new opportunities for growth and institutional participation. At the same time, increasing expectations around governance, reporting, and assurance are shaping a more mature and accountable ecosystem. This creates significant opportunities for finance and accounting professionals to guide organisations.
The future of stablecoins will not be defined by technology alone, but instead by the organisations that can combine innovation with transparency, control, and accountability.
DeMarco concluded: “Stablecoins may be enabled by regulation and technology, but adoption will depend on whether organisations can operate them safely, transparently, and in line with professional standards. The message is to understand the opportunity, but evaluate it through the lens of controls, governance, assurance, and trust.”
That perspective captures the central theme emerging across the stablecoin ecosystem. The next phase of growth will not be driven solely by technology or regulatory approval, but by the ability of organisations to build confidence through strong governance, transparent reporting, and independent assurance.
To hear the full discussion and gain additional insights from Patrick Fuller, Ed DeMarco, and me, listen to Episode 17: Stablecoins at a Turning Point: Regulation, Trust and What Comes Next. The episode explores the regulatory, operational, and governance questions that will shape the next phase of stablecoin adoption.
Additional resources:
ProSight Stablecoin Seminar SeriesProSight Annual Conference Stablecoin SessionAICPA Updates Criteria for Stablecoin Reporting to Address Controls Over Stablecoin OperationsStablecoin Reporting CriteriaGENIUS Act creates oversight and opportunity for stablecoins