Hong Kong Passes Stablecoin Bill: Cementing Its Position as the Global Crypto Hub

In a bold move to cement its position as the global crypto hub, Hong Kong has announced the passage of the Stablecoin Bill. With this move, Hong Kong has

Hong Kong has taken a significant step in cementing its position as a global crypto hub with the passage of the Stablecoin Bill. This move has put the United States at a disadvantage as it lags behind in stablecoin legislation.

Hong Kong's Legislative Council approved the third reading of the Stablecoin Bill, which will see the government introduce a licensing regime for fiat-referenced stablecoin issuers in Hong Kong. This move is part of a broader effort to expand the city's virtual asset regulatory framework and promote financial stability and innovation.

"This is not only in line with international regulatory requirements, but also lays a solid foundation for Hong Kong's virtual asset market, which, in turn, promotes the sustainable development of the industry, protects users' rights and interests, and strengthens Hong Kong's status as an international financial centre," said Christopher Hui, the Secretary for Financial Services and the Treasury.

Institutions will be able to apply to the Hong Kong Monetary Authority for stablecoin issuer licenses by the end of this year, and this initiative is a key priority in Hong Kong's vision to become an international crypto hub, noted Legislative Council member Ng Kit Chuang.

The Stablecoin Ordinance is guided by the principle of 'same activity, same risks, same regulation' and adopts a risk-based approach to create a resilient regulatory framework.

"The Ordinance has established a risk-based, pragmatic, and flexible regulatory regime. We believe that a robust and fit-for-purpose regulatory environment would provide favourable conditions to support the healthy, responsible, and sustainable development of Hong Kong's stablecoin and the broader digital asset ecosystem," said Eddie Yue, the Chief Executive of the Hong Kong Monetary Authority.

The United States, despite President Donald Trump's pro-crypto measures and the SEC’s renewed approach to the industry, is yet to take the lead in crypto regulation.

Over the past few weeks, the crypto community has been eagerly awaiting the passage of the GENIUS Act, a stablecoin bill that is poised to reshape the future of US crypto regulation.

While the Senate previously failed to advance the bill, the GENIUS Act achieved a procedural vote with a vote count of 66-32 on Monday night, signaling its potential for passage. However, the bill still requires a full-floor vote, which is expected tomorrow (May 22).

The GENIUS Act, which stands for "The Gemini, Earn, and Neglected Internal Revenue Service Unfunded Priorities Act," would create a federal framework for regulating stablecoins. It aims to impose a two-year delay on Title XV of the Internal Revenue Code, which would defer the administrative burden on taxpayers.

The bill also seeks to allocate an additional $75 billion to the President's Emergency Plan for Aiding Ukraine in response to the ongoing Russian invasion.

The bill would establish a licensing regime for stablecoin issuers, subject them to capital requirements, and mandate regular reporting on their activities to regulators. It would also empower the SEC to oversee the registration of stablecoin offerings.

The GENIUS Act now awaits a vote in the House of Representatives before potentially being signed into law by President Trump.