Regulation of Stablecoins in the US and UK (Issue 1 · Week 29, 2026)

01Event Overview

On July 8, 2026, AscendEX announced its closure and suspension of withdrawals due to the lack of EU MiCA licensing and failed fundraising efforts, exposing the compliance risks and fragile capital structures of exchange platforms. On the same day, 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. These incidents highlight the severe compliance challenges and operational risks faced by stablecoin issuers and trading platforms under the regulatory frameworks of the United States, the United Kingdom, and around the world.

02Course of the incident

• [2026-06-15] Binance’s prospects for European compliance depend on the approval process in France
• [2026-06-16] Trace Finance raises $32 million to build a compliant payment bridge for stablecoins in Latin America
• [2026-06-18] WhiteBIT obtains Austrian MiCA licensing, marking the countdown to full compliance operations across Europe
• [2026-07-01] AscendEX announces shutdown and suspension of withdrawals due to lack of EU MiCA licensing and failed fundraising
• [2026-07-08] AscendEX shuts down permanently amid market deterioration and MiCA compliance pressures, with millions of dollars missing from its hot wallet
• [2026-07-08] Criminal charges filed against those who refused to freeze assets, triggering a crisis regarding stablecoin compliance
• [2026-07-09] Wisconsin and New York state file criminal charges and protests over Circle’s refusal to freeze fraudulent assets
• [2026-07-10] The implementation of EU MiCA regulations boosts the growth of compliant stablecoins; Circle’s EURC receives a French license to fill a market gap

03Impact Analysis

04Impact Analysis

05Market Price Dimension

The process of regulatory compliance for stablecoins is directly reshaping asset pricing logic and liquidity distribution. On July 10, 2026, the implementation of the EU’s MiCA regulations spurred the rise of compliant stablecoins. EURC, issued by Circle, obtained a license in France, with both its on-chain activity and the number of new addresses reaching new highs in four years. This compliance premium effect was evident, standing in sharp contrast to AscendEX, which had to shut down due to failure to meet regulatory requirements. AscendEX faced a funding gap of millions of dollars in its hot wallets, putting its users at risk of not receiving full refunds. Market funds are accelerating their shift toward assets with clear legal status, with compliant stablecoins becoming the preferred tools for hedging and transaction settlement. Those platforms that fail to comply are facing dual challenges of liquidity shortages and asset devaluation.

06Regulatory Response Dimension

Major jurisdictions around the world are shifting from “passive response” to “proactive regulation,” with significant improvements in regulatory intensity and enforcement details. On July 9, 2026, Wisconsin and New York State filed criminal charges against Circle for refusing to freeze fraudulent assets, triggering intense debates over the technical architecture of stablecoins and their legal obligations. This marked an expansion of regulatory oversight into the on-chain execution level. Meanwhile, with the end of the MiCA transition period in the EU, compliance requirements became so stringent that 90% of institutions were forced out of the market. Germany established itself as a key player by issuing licenses to 57 companies. Japan is also building a comprehensive compliance framework through support from its prime minister, investments of nearly $500 million by SBI, and pilot programs for stablecoin payments by Rosen. The space for regulatory arbitrage has been greatly reduced, making licensed operations a necessity for survival in this industry.

07Ecological Impact Dimension

The establishment of a regulatory framework is accelerating the deep integration between traditional finance and the crypto ecosystem, speeding up the standardization of infrastructure. On July 9, 2026, Vanguard planned to integrate its $12 trillion in asset management assets into tokenization and stablecoin infrastructure, thereby reshaping industry rules. On July 10, CME and ICE announced the launch of GPU futures, using stablecoins for settlement and on-chain verification to bring computing resources into standardized capital markets. In addition, LayerZero and Centrifuge have resolved the conflict between compliance requirements and speed in the $33 billion RWA market through their hub-and-spoke model. The focus of the ecosystem is shifting from speculative applications to financial infrastructure backed by real assets and supported by regulatory frameworks. As a crucial link between traditional capital and the on-chain economy, stablecoins have further solidified their strategic importance.

08Subsequent focus areas

1. Progress of Regulatory Legislation and Judicial Conflicts in the US and UK: Keep a close eye on the review milestones of the stablecoin bill at the federal level in the United States, as well as the licensing criteria set by the Financial Conduct Authority (FCA) in the UK. Given that Circle faced criminal charges in Wisconsin and New York on 2026-07-09 for refusing to freeze assets, it is necessary to be vigilant against conflicts between local law enforcement actions and the federal regulatory framework. Large-scale criminal prosecutions or asset freezes targeting stablecoin issuers would signal extremely high compliance risks.

2. Spillover Effects of EU MiCA Compliance: Monitor the on-chain activity data and growth trends of new addresses for compliant stablecoins such as EURC. Data from 2026-07-10 showed that EURC’s on-chain activity and number of new addresses reached their highest levels in four years. A slowdown in these metrics or large-scale redemptions could indicate shrinking liquidity in the European market. Additionally, pay attention to cases where non-EU institutions withdraw from the market due to failure to meet MiCA standards, such as AscendEX shutting down on 2026-07-01 for not meeting the requirements. Frequent such closures would suggest an accelerated industry consolidation.

3. Depth of Integration by Traditional Financial Institutions: Track the progress of asset management giants like Vanguard in integrating their $12 trillion in assets into tokenization and stablecoin infrastructure. If leading institutions pause or withdraw their investments, it would indicate waning confidence among traditional capital in crypto infrastructure. At the same time, monitor the outcomes of Japan’s SBI Group investing nearly $500 million in full-chain solutions and Rosen’s pilot projects for stablecoin payments. If the scale of these pilots falls short of expectations, it could hinder the expansion of compliant payment ecosystems in Asia.

4. Technological Breakthroughs in Infrastructure Compliance: Pay attention to the open-source development of privacy-compliant technologies like those developed by EthSystems, as well as real-world applications in banking sectors. If privacy compliance solutions fail to pass audits by major banks or suffer from significant vulnerabilities, it will deter institutional funds from entering the market. Furthermore, monitor the actual throughput of LayerZero and Centrifuge in addressing the compliance speed paradox within the $33 billion RWA market. If cross-chain compliance efficiency does not improve significantly, it may restrict the expansion of the RWA market.

09Related Reads

1. “Compliance Pressures Force Platform Shutdowns; Millions in Shortage for Hot Wallets”
2. “Refusing to Freeze Assets Leads to Criminal Charges; Stablecoin Compliance Crisis Erupts”
3. “MiCA Takes Effect, Triggering a Compliance Wave: EURC On-Chain Data Reaches Four-Year High”
4. “Only 12% Survive Under MiCA: Germany Leads with 57 Licenses”
5. “Key Figures Back It Up; SBI Invests 500 Million, Rosen Enters Market: Japan Seizes Compliance Benefits”
6. “Asset Management Giants Reverse Course: 12 Trillion in Assets Integrated into Crypto Infrastructure”
7. “The Era of Computing Power Futures: How CME and ICE Are Reshaping the Trillion-Dollar GPU Market”
8. “33 Billion in RWA Market: LayerZero and Centrifuge Solve the Paradox of Compliance Speed”
9. “Compliance Failures Lead to Shutdown: AscendEX Withdrawals Stuck in Manual Review Process”
10. “Ethereum Foundation Team Founds Privacy-Compliant Company EthSystems”