Experts say the recent signing of the Genius Act by US President Donald Trump could mark a turning point for global crypto regulation, particularly for stablecoins — cryptocurrencies pegged to traditional currencies like the US dollar — and could significantly boost user adoption in markets like the UAE.
The Genius Act establishes the first federal regulatory framework in the US for dollar-pegged stablecoins, aiming to make them safer and more widely accepted for payments and decentralised finance (DeFi). Analysts believe the legislation will encourage newcomers, especially in the UAE, to explore the digital asset space with greater confidence.
Valued at over $260 billion (Dh954 billion), the global stablecoin market could expand to $2 trillion (Dh7.3 trillion) by 2028 under the new regulatory regime, according to CoinGecko.
“The days of speculative chaos are fading,” said Meera Judge, Director of Regulatory Licensing and Policy at Binance. “Clear, enforceable rules create the foundation for innovation and real adoption. When people feel safe, they’re more likely to engage.”
Judge noted that the UAE is also making significant regulatory progress, with the Central Bank of the UAE (CBUAE) finalising guidelines for AED-backed stablecoins. In December, AE Coin became the first such token to receive full CBUAE licensing under the country’s digital payment token services framework.
“This is about more than just launching another stablecoin,” Judge said. “It’s about building a regulated, secure crypto ecosystem that’s competitive on the world stage.”
Stablecoins are designed to maintain a steady value, often pegged to fiat currencies like the dollar or dirham. The UAE’s focus on AED-backed stablecoins reflects a broader regional ambition to reduce reliance on the USD and promote financial sovereignty.
“Having more fiat-pegged options, such as AE Coin, strengthens the resilience and accessibility of the global crypto ecosystem,” Judge added.
Gracy Chen, CEO of crypto exchange Bitget, echoed that sentiment, saying the UAE’s new stablecoin regulations — which came into effect in June — prioritise local currency stability and strong oversight by the central bank.
She contrasted the UAE’s regional approach with the US-centric focus of the Genius Act. “While the US framework supports broader market access, the UAE’s strategy enhances regional trade and local financial autonomy,” Chen said.
The entry of major banks — including JPMorgan, Citigroup, and UAE’s FAB and Zand Bank — into the stablecoin market is also expected to drive legitimacy and adoption, though Chen warned that tighter regulation could raise compliance costs and increase market concentration.
Still, experts agree that stablecoins are now positioned to become a central pillar of the evolving financial landscape — and the UAE is preparing to play a leading role.
