Investigator: Pablo Marcello Baquero

Abstract:
The early market for crypto assets was primarily shaped by traditional “non-backed” cryptocurrencies. Their value was determined largely by supply and demand, making them highly volatile and unsuitable as a reliable means of payment in the digital economy. Stablecoins emerged to a great extent as an attempt to overcome the inherent speculative nature of “non-backed” cryptocurrencies, which has limited their deployment for payments. In early 2025, the global market for stablecoins has been estimated at USD 230 billion, and is mostly dominated by US companies. While this market has grown over time, its development has not been uncontroversial nor without difficulties. Initially, traditional financial institutions feared that, without regulation, the dissemination of stablecoins could imperil the monetary control of central banks, concentrate power in a few major technology companies, and present risks to consumers and investors, such as lack of transparency, information, solvency and potential technical issues. This project intends to compare the existing regulatory framework for stablecoins in place in the EU, with the ongoing legislative projects under consideration in the US concerning their regulation. It further seeks to analyze the convenience and potential of a future harmonized transatlantic framework that could facilitate the trading and exchange of stablecoins across the US and Europe.