Stablecoin News – On July 8, 2025, the Atlantic Council published a report warning that stablecoins’ rapid adoption could pose financial stability risks, as consumer complexity and regulatory gaps persist. With the global stablecoin supply hitting $253.7 billion in June, and trading volume surging 154% in 2025, stablecoins are becoming integral to crypto markets. However, contributor Ashley Lannquist, a former IMF digital finance expert, cautioned that complexities like network fees and wallet management could deter retail users, while large-scale adoption risks systemic instability.
The report highlighted that 88% of stablecoin demand is crypto-native, with only 6% used for payments. This limits their mainstream impact, as Forbes noted on July 3, calling stablecoins “a solution looking for a problem” in developed economies. Regulatory frameworks like MiCA, which approved 14 issuers on July 8, and the GENIUS Act address some concerns, but gaps remain, especially in cross-border oversight. Many on social media posts on July 8 urged Europe to back euro-based stablecoins to counter U.S. dominance, reflecting geopolitical tensions.
Shenzhen’s scam warnings on July 8 underscored fraud risks, which the Atlantic Council cited as a barrier to trust. As stablecoins integrate into platforms like Cardano and Dubai’s QCDT fund, their complexity must be addressed to ensure sustainable growth without destabilizing global finance.
