U.S. Backs Singapore's Stablecoin Framework as a Model for International Regulatory Standards

The U.S. Treasury has commended Singapore for its proactive stance on regulated stablecoins and digital assets, highlighting a shared commitment to balancing innovation with regulatory oversight. At the APEC 2025 summit in Gyeongju, South Korea, Treasury Secretary Scott Bessent acknowledged Prime Minister Lawrence Wong’s efforts in integrating U.S. dollar-backed stablecoins into Singapore’s financial sector, according to

. The talks focused on joint initiatives to prevent illegal crypto activities, enforce energy-related sanctions, and promote blockchain advancements within a regulatory framework, as reported by .

Singapore’s approach to digital finance has attracted global interest for its effective blend of technological progress and strict regulation. The Monetary Authority of Singapore (MAS) has positioned stablecoins as a link between conventional banking and decentralized finance, with domestic banks piloting blockchain-based settlement solutions and regulated issuers broadening their operations, Blockonomi noted. The U.S. Treasury pointed to Singapore’s ability to uphold rigorous compliance while fostering innovation, a strategy Washington sees as a model for responsible global adoption, according to Cointelegraph.

The stablecoin sector, now exceeding $295 billion in value, is entering what has been described as an "infrastructure war," according to a

based on findings from and Gate Research. Competition is heating up as leading firms such as , , and Stripe compete for leadership in payment settlement infrastructure, with Tether’s commanding 60.66% of the market and Circle’s gaining significant ground this year. Analysts at JPMorgan attribute USDC’s rise to its compliance with the European MiCA regulations and the U.S. GENIUS Act, a point highlighted by and supported by .

New regulations are transforming the industry landscape. The GENIUS Act, which took effect in July 2024, bans stablecoin issuers from offering interest to holders, classifying them as digital cash rather than investment vehicles, as noted by

. At the same time, MiCA’s rollout has enhanced USDC’s standing in Europe, while Tether’s non-compliance has resulted in its removal from certain exchanges, according to . Circle’s Cross-Chain Transfer Protocol (CCTP) has further strengthened USDC’s market position by enabling secure, non-custodial transfers across blockchains such as and Base, as also mentioned in the Yahoo Finance report.

The U.S. and Singapore also explored broader financial collaboration, including strategies to fight cross-border crime and enforce sanctions on Russian and Iranian oil transactions. Bessent stressed the value of real-time data sharing to track illicit crypto movements, highlighting the growing importance of digital finance in global economic security, as reported by Blockonomi.

With stablecoin usage on the rise, the industry’s focus is moving from token supremacy to infrastructure dominance. Citigroup and Western Union are expanding their stablecoin payment systems, and Revolut has recently launched zero-fee, 1:1 USD-to-stablecoin conversions, as covered by

and in a . These trends point to a maturing sector where regulatory compliance and institutional participation are key drivers of growth, with Singapore’s regulatory approach serving as a benchmark for global policymakers.