The Smart Copy Mode is a simple-to-use copy trading feature on Bybit that lets you reap profits from the crypto market even without prior trading experience.

Trading cryptocurrencies can be a lucrative way to earn from the ever-volatile crypto market. However, most people shy away from it due to the intense 

Thankfully, the world of trading now has helpful tools that have simplified crypto trading and made it easier even for beginners to make money from price movements.

First launched as part of a major upgrade in early 2023, Smart Copy Mode offers a simplified way to follow experienced traders known as Master Traders and automatically mirror their strategies. Today, it's one of the easiest and most intuitive ways for anyone, even beginning traders, to tap into the expertise of top-performing traders on Bybit and earn profits.

In this article, we’ll explore how Bybit Smart Copy Mode works and how you can safely make profits as a 

Smart Copy Mode is a simple-to-use copy trading feature on Bybit that lets you reap profits from the crypto market even without prior trading experience.

 Smart Copy Mode is part of the three major upgrades to the Bybit Copy Trading platform 

As of 2025, it remains one of the simplest and safest ways for users to realize returns from automatically mimicking successful Master Traders on the platform.

The Smart Copy Mode requires only three steps to follow a 

 and start earning. All you’ll need to do is enter an investment amount (minimum 100 USDT), select a Bybit account to transfer the funds from and click the 

The entire process is optimized for ease and risk control, making it ideal for anyone looking to trade without micromanaging their positions.

Here are some key features of the Bybit Smart Copy Mode that make it easier to trade while minimizing risks:

Rather than blindly copying a Master Trader’s full position size, Smart Copy Mode calculates a ratio based on both your balance and the Master Trader’s, helping you manage exposure proportionally.

Case in point: Let’s say a Master Trader has 10 BTC in their account but they enter a long position with only 1 BTC. In typical copy trading, a Follower who has 1 BTC in their account will automatically copy the trade with the whole 1 BTC, which exposes their entire portfolio.

However, with the Smart Copy Mode, a ratio calculated based on the available balances in the Follower’s and the Master Trader’s accounts will be exposed for copy trading. In this case, if the ratio is calculated to be 10%, the Follower’s copy trade amount will be 0.1 BTC instead of their full balance of 1 BTC. 

This proportional sizing is especially useful for beginners who may not want to expose their entire portfolio to a single trade.

Another amazing feature of the Smart Copy Mode is the Bybit CopyGuard which is designed to limit losses by adding an extra layer of protection for Followers. While most Master Traders strive to consistently implement successful trading strategies, it’s not uncommon to find some trades that will incur losses.

In such instances as a copy trader, you will incur losses similar to the Master Trader. That’s where the Bybit CopyGuard feature comes in handy.

With CopyGuard turned on, all of the Follower’s trades are optimized in the sense that the entry will always be at an optimal price not worse than that of the Master Trader. If an optimal price is not attained, the trade won’t be copied. However, note that at the point of trade execution, 

 may occur, causing small price discrepancies. However, CopyGuard filters out major price differences that could lead to instant losses. 

To give Followers even greater control over their risk exposure, Bybit now offers a Trailing Stop feature within Smart Copy Mode.

This tool automatically adjusts your exit point based on your account’s highest recorded equity. You simply set a retracement percentage (e.g., 20%), and if your equity drops by that percentage from its peak, all positions will be closed, locking in profits and limiting potential losses. 

Let’s say your account equity fluctuates as follows: 500, 450, 600, 900, 800, 1,000, 800. With a 20% retracement rate, the trailing exit equity adjusts accordingly: 400, 400, 480, 720, 720, 800, 800. When your actual equity drops to 800, the trailing stop triggers and your copy trading positions are automatically closed. 

, the final equity upon exit may differ slightly from the calculated exit equity.

The Trailing Stop feature is especially useful for volatile markets, helping you secure gains without manually monitoring every trade.

Together, Bybit’s copy by ratio, CopyGuard and Trailing Stop features work together to ensure that Followers have an extra layer of protection against losses when engaging in copy trading. 

Smart Copy Mode vs. Advanced Copy Mode: Which is better?

 allow you to choose between the Smart Copy Mode or the Advanced Copy Mode. While both provide an avenue for you to successfully copy a Master Trader’s strategy, there are several differences between the two that may make you opt for one over another. They are:

From the above comparison, it’s highly recommended to go for the Smart Copy Mode if you are a beginner to crypto or copy trading since it provides you with loss-limiting features before you learn your way around the field. For advanced traders, you can go for the Bybit Advanced Copy Mode or stick to the Smart Copy Mode.

Smart Copy Mode has made it easier to realize gains from copy trading.

 Regardless of your status as a beginning or advanced trader, you can have the assurance of a safe trading experience even with margin trading as all the risks are mitigated for you through the Smart Copy Mode.

Compared to the Advanced Copy Mode, the copy by ratio, CopyGuard 

 features within Smart Copy Mode help limit losses through reduced risk exposure. The enhanced automated settings on Smart Copy Mode are sure ways to successfully copy Master Traders without fear of wiping out your account. So, 

Beginner

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Bybit Smart Copy Mode: The way to secure copy trading profits

Invest like a VC with just $20. Common Wealth (WLTH) opens access to early-stage crypto projects through a transparent, community-driven platform.

The traditional venture capitalist (VC) investing model is often elitist and out of reach for many retail investors. While this is particularly the case in the world of traditional finance (TradFi), access to promising early-stage crypto assets is also frequently reserved for larger entities, namely institutional investors and 

. When we hear about a wildly successful crypto project and its token, we often find that its early backers are well-known investment funds or cashed-up VCs. These early investors are the ones who benefit the most from the token’s meteoric rise on the market.

 chain that aims to democratize the way VC investment works in the crypto industry. By using a community-driven approach to sourcing and investing in promising projects, the Common Wealth platform reduces barriers to entry to VC activities. Smaller-scale retail investors, both casual and experienced, are the primary beneficiaries of Common Wealth's unique approach to crypto investment.

Common Wealth has partnered with a network of notable crypto investors who refer high-potential projects to the platform, where these projects are carefully evaluated and qualified to be included in the investment products available to the user community. The entire evaluation process is also driven by community governance procedures, making it transparent and secure. Thanks to Common Wealth, investing in high-potential early-stage crypto opportunities is now open to anyone — even investors who want to start with as little as $20.

 (WLTH) is a decentralized platform that allows anyone to become a crypto VC by using a vetting-based, democratized, community-driven approach to selecting promising cryptocurrency investment opportunities.

The core idea behind the project is to tear down barriers to entry for crypto investment, particularly concerning early-stage promising ventures. Common Wealth has partnered with a group of prominent, savvy crypto investors (referred to as “Oracles”) who refer high-potential crypto investment opportunities to the platform. All the referrals are based on projects or assets that at least one so-called Oracle has personally invested in. As of May 2025, the platform works with ten Oracles, all of whom are notable investors with solid track records and standing in the crypto investment world.

The platform's governance community scrutinizes each referred project via “Oracle Ask Me Anything” (AMA) sessions, proposal workshops and analytics. Community investors then vote to decide on the projects' final eligibility. Any Common Wealth user can invest in qualified projects for as little as $20.

There are two main types of investors on the platform: casual and community members. The former typically invest smaller amounts, and pay with fiat currency using credit or debit cards, greatly simplifying access to the selected projects for users without an affinity for cryptocurrency transactions. Casual investors are normally those who adopt a hands-off approach to crypto investing and tend to start with smaller investment amounts.

Members of the second group, community members, invest larger amounts, or actively participate in the decision-making process for project selection. They’re the core of the governance community on Common Wealth. These investors use cryptocurrency to invest, paying with the 

The Common Wealth project was launched in February 2024 on the Base Layer 2 chain. In May 2025, it debuted its native token, WLTH.

All investment opportunities offered on Common Wealth are in the form of funds that provide exposure to promising projects and assets. For instance, the platform’s Priceless Fund invests in 14 high-potential 

 startup projects, while the Alpha Fund is based on early-stage projects in the areas of artificial intelligence (AI), the 

 (RWAs), decentralized physical infrastructure networks (DePINs) and gaming.

Unlike traditional investment funds, Common Wealth funds are completely permissionless and noncustodial, operating through blockchain smart contracts. As such, no central entity can influence fund management, thus ensuring transparency and discouraging vested interests.

Some funds are based on contributions from the wider user community, and are typically capped funds. There are also perpetual funds, which are funded by the investor community that participates in on-platform governance.

Bundles are Common Wealth funds based on a dynamic mix of assets satisfying certain criteria, e.g., a specific crypto niche. The platform has launched three such bundled products: 

Since the bundles are dynamic, the top five assets may switch according to market sentiment. All allocations within the bundles are equally split between their five assets. For instance, if you invest $100 in a bundle, each of the five assets in it will be allocated $20 of your investment.

The Common Wealth platform charges three types of fees:

When you invest in a Common Wealth fund, you’re issued a 

 (Slice NFT) that denotes your share of capital in the fund. Slice NFTs are freely tradable on the market, investors can quickly access liquidity by selling their Slices. Since these NFTs are fractionalized, you can sell a part of your Slice or the whole of it, per your preference.

Distributed Autonomous Operating System (DAOS)

The Common Wealth Distributed Autonomous Operating System (DAOS) is based on a set of 

 that automate the entire workflow of the platform’s governance processes. Project considerations, analytics related to candidate projects, vote management and other functions related to decentralized governance are handled by the DAOS.

 (DAO) consists of a set of rules and an on-chain community, the Common Wealth DAOS is an entire permissionless system of interoperable autonomous nodes that automates and powers all the platform’s governance elements and procedures.

What is the Common Wealth crypto token (WLTH)?

 asset issued on the Base Layer 2 chain. The token has a wide range of functions on the platform. While investments in Common Wealth are based on the USDC stablecoin, all other key functionalities are enabled via WLTH. These include:

WLTH is a capped asset with a maximum supply of 1 billion. As of mid-May 2025, its total supply stands at around 984 million. The chart below shows the token's supply allocation shares and vesting periods upon its launch in May 2024.

As of May 16, 2025, the WLTH token is trading at $0.003877, which is 98.2% lower than its ATH of $0.2148 on Jul 22, 2024 and 82.8% higher than its ATL of $0.002121 on Apr 18, 2025.

Long-term price forecasts for WLTH are mostly bullish.DigitalCoinPrice 

 of $0.0129 in 2027 and $0.0192 in 2030, whileCoinCodex 

 at around $0.0042 in 2027 but rise to $0.014 in 2030.

VC investment in financial markets remains an exclusive club that isn’t easily accessible to everyday retail investors. In most cases, this applies to the crypto market as well. Common Wealth's value to the broader crypto community lies in designing a system that makes investment in promising web3 initiatives accessible to everyone. The platform's novel model creates an opportunity to involve millions of individuals in the VC game. This could lead to significant growth in overall web3-based VC funding, and positively affect the entire crypto investment landscape over the coming years. Finding a future star in the crypto market with as little as $20 has never been easier — thanks to Common Wealth and the VC tools it provides!

Intermediate

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Common Wealth (WLTH): Invest like a VC — without being one

The Japanese yen (JPY) is one of the most active and volatile currencies in the foreign exchange (FX) market. 

The Japanese yen (JPY) is one of the most active and volatile currencies in the foreign exchange (FX) market. Traders around the world focus on JPY pairs like USD/JPY, EUR/JPY and AUD/JPY because they offer strong price movements and frequent opportunities.

Unlike stocks or cryptocurrencies that typically swing wildly, most FX pairs are relatively stable. That’s why JPY moves stand out. For example, in July 2024, the USD/JPY ratio reached 162 — its highest level since December 1986. Then, it dropped to 139 by September — a 14% decline in just two months.

By January 2025, USD/JPY bounced back to 158, only to fall again to 139 in April. These large moves show why JPY is a favorite for traders seeking momentum and volatility.

Interest rate gap: The most important driver

One of the main drivers behind JPY price movements is the 

 between Japan and other major economies — especially that of the US.

In simple terms: currencies with higher interest rates usually attract more capital. When US rates rise and Japanese rates stay low, investors shift money into the dollar and out of the yen. This pushes USD/JPY higher.

But when Japan starts raising its rates — or the US holds rates steady or cuts them — the gap narrows. Then, investors shift back into the yen, pushing USD/JPY downward.

Right now, the US interest rate is 4.5%, while Japan’s is just 0.5%. That’s a big gap. However, this could change soon.

If Japan raises rates or signals higher rates while the US holds or cuts its own, expect downward pressure on USD/JPY. If both rates stay unchanged, the focus will shift to the tone of the policy statements and forward guidance.

Beyond interest rates, the yen is also seen as a 

During times of global uncertainty and/or geopolitical risk, investors prefer holding assets that are seen as stable and less risky. JPY fits this role. This is especially true when tensions rise between major economies, like the ongoing 

In early 2025, after US President Trump returned to office and reignited trade tensions, the yen gained strongly. So far this year, it’s up 

The reason is simple: traders and investors are nervous about global growth. If Trump pushes for more tariffs, or if trade talks fail, the yen is likely to rise further. On the other hand, 

, the dollar could recover against the yen.

Technical analysis: Levels and indicators to watch

The current technical setup for USD/JPY is interesting for traders.

In short: 139 is the floor, and 150–155 is the ceiling. Traders should watch price reactions at these levels closely.

Key events ahead: Rate decisions and trade headlines

Two major types of events will shape JPY trading in the short term:

Conclusion: Volatility, strategy and the JPY outlook

The Japanese yen offers one of the most attractive trading setups in the FX market. Its strong volatility, sensitivity to global news and clear technical levels make it a prime choice for both short- and medium-term strategies.

The key to trading JPY successfully lies in watching the 

. June 2025 will be a critical month, with back-to-back central bank meetings in Japan and the US.

technical chart shows strong support at a level of 139

, backed by clear CCI signals. On the upside, resistance lies at 150 and 155 — levels that could come into play if the market turns more optimistic.

Traders should also keep in mind that if a trade deal is signed between the US and China, the dollar could gain ground, easing pressure on USD/JPY.

Until then, the Japanese yen remains one of the best currencies for active traders looking for momentum, opportunity and global relevance.

Advanced

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Bybit x FXStreet FX Report: Why the yen is a trader’s favorite

MetaMask will roll out native support for Solana ($SOL) in May 2025, enabling users to directly access SOL tokens and interact with Solana-based decentralized applications (dApps) from within the wallet. 

Daily top performer — Hyperliquid (HYPE)

The S&P 500 rose 0.41% on Thursday, supported by trade optimism and cooling inflation, marking its fourth straight gain. Gold climbed 1.3% to $3,218 as weak U.S. data and a softer dollar raised Fed rate cut hopes, while geopolitical tensions added safe-haven demand. The Coindesk Indices, which tracks the broader crypto market, down 0.91%, with Bitcoin and Ether down 0.13% and 2.42%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is HYPE, which rose 7.9% after Hyperliquid was spotlighted in a Bloomberg podcast for its transparent onchain revenue model.

Hyperliquid (HYPE), launched in June 2023, is a decentralized perpetuals exchange built on a high-performance Layer 1 blockchain. It offers fast, low-cost perpetual futures trading with full on-chain transparency and performance comparable to centralized exchanges. Bloomberg’s Surveillance podcast 

 crypto’s role in shaping the future of finance, citing projects like Hyperliquid for their transparent, onchain revenue models.

Check out the latest prices, charts, and data of 

, enabling users to directly access SOL tokens and interact with Solana-based decentralized applications (dApps) from within the wallet. Confirmed by MetaMask’s CEO and co-founder, this integration marks a major step in expanding beyond Ethereum Virtual Machine (EVM) chains. The move enhances interoperability across blockchain ecosystems and broadens MetaMask’s reach in the multichain DeFi space.

Yesterday, U.S. spot Bitcoin ETFs saw $294.8 million in net outflows on May 15, with $39.1 million from GBTC and $255.7 million from other issuers.

, offering users a chance to earn testnet access through Galxe quests. Participants can complete tasks to win invite codes for the APT Game, a rollup built by Radius. Only 1,000 codes will be released over the next month.

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Metamask to add native Solana support in May, expanding beyond EVM chains

Bybit Learn

Stablecoin

Regulations

Explore how upcoming US stablecoin regulations may impact assets like USDC and USDT — who stands to benefit, and which stablecoins face greater risks.

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Stablecoins are tremendously popular in the crypto industry, with assets like 

, Sky Dollar (USDS) and numerous others used for on-ramping, off-ramping, value storage and transfers to ensure stability and rate predictability. For instance, the USDT stablecoin usually features higher trading volumes than even Bitcoin (BTC) or any other cryptocurrency on the market. As of the time of this writing (Apr 8, 2025), three out of the top seven crypto assets by daily trading volumes are stablecoins — USDT, USDC and First Digital USD (FDUSD).

Given the popularity and active use of stablecoins, regulatory bodies around the world have taken measures to control the operation of these assets. The European Union (EU), UK and key crypto hubs in Asia (such as Hong Kong and Singapore) have passed laws providing varying levels of regulatory oversight for stablecoin cryptocurrencies. Unlike these jurisdictions, the US has yet to implement comprehensive federal-level laws regarding stablecoin issuance, trading and other operations.

However, 2025 might finally see the first US legal framework addressing stablecoin regulation. It’s expected that a couple of legislative acts concerning stablecoins — the STABLE Act and GENIUS Act — will be considered by the US House of Representatives and the Senate in the coming months, and may be enacted later this year. If implemented, these laws will bring significant clarity to the regulation of stablecoins in the US market. 

As a result of these regulatory changes, some stablecoin assets are widely expected to benefit, while others might find themselves in a more challenging situation.

In this article, we’ll examine the current and expected stablecoin regulatory landscape in the US, compare it with frameworks used in other countries worldwide and discuss which stablecoins may see their standing and popularity boosted by the changes — and which ones are likely to face difficult choices.

 are a cornerstone of the modern crypto trade. Collectively, stablecoin cryptocurrencies typically account for more than half of the daily trading volumes in the crypto market. These assets — many of which are pegged to one of various established fiat currencies — serve as islands of rate stability in a market known for its high volatility. 

As crypto users move their funds between the 

 and traditional banking systems, stablecoins provide the necessary predictability. Their fiat pegs are also a vital magnet for investors who prefer to hold their funds in crypto, but want to maintain their investments’ value without exposure to the market's typical wild fluctuations.

Moreover, individuals and businesses around the world use stablecoins for crypto payments, and for settling transactions that adhere to contractual payment terms. Stablecoins also act as a key bridge between the worlds of crypto and traditional finance, creating potential for the mass adoption of cryptocurrency by the mainstream user community of retailers, investors and consumers.

With so many important use cases, it's no wonder that stablecoin regulation is critical for users, regulatory bodies, asset issuers and all other relevant parties.

Regulation for stablecoins in the US vs. other countries

Yet, as of April 2025, the US still lacks a comprehensive federal-level regulatory framework for stablecoins. There are several laws, both at the federal and state level, that address some aspects of stablecoin operations, but this regulatory environment is patchy and only partially addresses critical stablecoin-related processes.

In contrast to the US, many jurisdictions worldwide have enacted nationwide laws that govern the issuance, management and use of stablecoin cryptocurrencies. For instance, stablecoins have come under regulation in the European Economic Area (EEA) via the Markets in Crypto-Assets Regulation (MiCA), a piece of legislation adopted by the European Parliament in 2023. Similar measures have been implemented in Singapore, the UK, Hong Kong and other jurisdictions known for active 

The adoption of a comprehensive regulatory framework for stablecoins in the US is expected to create opportunities for the broader use of crypto in the world's largest economy. Such a framework would help address many of the challenges posed by the current and largely unregulated use of these assets — lack of certainty on the fiat reserves maintained by issuers, insufficient audit procedures, and an unwillingness on the part of many business and individual users to adopt stablecoins due to trust issues — and more.

Legislators in the US are now working toward enacting a federal-level framework to regulate stablecoins. The framework will depend upon two critical pieces of legislation — the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act and the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act. As of early April 2025, both acts have been submitted to relevant chambers of the US Congress and are in the pipeline for consideration by the country’s lawmakers.

The GENIUS Act was introduced on Feb 4, 2025, to the US Senate by Republican Senator Bill Hagerty with the support of Democratic Senator Kirsten Gillibrand and fellow Republican Senators Cynthia Lummis and Tim Scott. The Act aims to establish a comprehensive framework to regulate stablecoins. Key points of the Act include the following:

The STABLE Act was introduced on Mar 26, 2025 to the House of Representatives by Republicans Bryan Steil and French Hill. The Act is similar to GENIUS in many ways, and seeks to provide a comprehensive regulatory framework for stablecoins. The key differences between the two Acts are as follows:

US vs. global strategies for stablecoin regulation

In recent years, the EU has been at the forefront of developing and implementing crypto regulation, including provisions concerning stablecoin assets. In May 2023, the European Parliament adopted MiCA, which provides a comprehensive mechanism for overseeing blockchain-based assets. 

Part of MiCA deals with the topic of stablecoins. Under the regulation, the term “stablecoin” isn’t legally defined. Instead, MiCA classifies stablecoins into two asset types — Electronic Money Tokens (EMTs) and Asset-Referenced Tokens (ARTs). The former refers to stablecoins pegged to a single established asset, while the latter is defined as stablecoins that track multiple assets.

MiCA came into effect in December 2024 throughout the EEA, which includes the 27 member states of the EU plus Norway, Iceland and Liechtenstein.

In the UK, the Financial Services and Markets Bill (FSMB) received Royal Assent in June 2023, officially becoming law as the Financial Services and Markets Act 2023 (FSMA 2023). The Act contains clauses under which stablecoins may be recognized as regulated payment assets. Meanwhile, fiat-backed stablecoins may be considered valid payment instruments, depending upon approval by the country’s financial regulators — the Financial Conduct Authority (FCA) and the Bank of England.

In Hong Kong, the territory’s central banking institution (the Hong Kong Monetary Authority, or HKMA) proposed a mandatory Regulatory Regime for Stablecoin Issuers in 2023, calling for strict licensing requirements for stablecoin issuers in Hong Kong. In December 2024, the Hong Kong government published a proposed stablecoin bill that will likely become the first comprehensive framework for regulating stablecoins in the local market.

The Monetary Authority of Singapore (MAS) announced the finalization of its regulatory framework for stablecoins in August 2023. It specifies key requirements for Singapore-based issuers of single-currency stablecoins pegged to the Singapore dollar (SGD) or any G10 fiat currency, which includes the world’s most popular national currencies, such as the US dollar, euro, British pound sterling and Swiss franc, among others. Under the Singapore stablecoin framework, these issuers must satisfy stringent requirements for 

, redemption procedures and even white paper release.

Japan is another Asian jurisdiction with strict and well-defined regulations on the issuance of stablecoins. In June 2022, the country’s parliament passed a bill that established the role of stablecoins and the rules governing their issuance and use. Under the law, only locally licensed banks, money transfer agents and trust companies can issue stablecoins. The law also defines stablecoins as digital money. Japan’s stablecoin law leaves out (and effectively prohibits) the registration of algorithmic stablecoins and stablecoins issued by financial entities not licensed in Japan itself.

In the UAE, issuance and other procedures related to crypto assets are now primarily regulated by the Payment Token Services Regulation released by the country's Central Bank (CBUAE). The regulation came into effect in August 2024, and is focused on a broader spectrum of crypto assets, not just stablecoins. Cryptocurrencies — if they satisfy the licensing requirements set out by the regulator — are classified as payment tokens. Their issuance is only permitted if the Central Bank grants the appropriate license. Stablecoins are specifically addressed in the regulation concerning algorithmic stablecoin assets, whose issuance is explicitly prohibited.

Which stablecoins could gain from regulation?

 is the second-most traded stablecoin in the world. It’s pegged to the US dollar, and is backed by cash and short-term US Treasury bills. USDC was launched by the Centre Consortium, a Boston-based company founded jointly by the Coinbase crypto exchange and the Circle fintech payments provider. On Apr 1, 2025, Circle filed for an 

 (IPO), disclosing that it had acquired Coinbase’s share in the Consortium in 2023.

With its US dollar cash and T-bill reserves fully backing USDC and regular audits, Circle has established itself as a reliable and trustworthy stablecoin issuer. Circle itself is a highly regulated payments provider in the US, both at the federal and state levels. These factors have long established USDC as one of the crypto industry's best and most reliable stablecoin assets. Thus, it’s widely expected that the USDC coin is poised to benefit from the upcoming US regulation of stablecoins.

 is another cash and T-bills backed stablecoin. It's issued by the Hong Kong–based First Digital fintech company. Launched in July 2023, FDUSD steadily rose in the rankings, and has become one of the most popular stablecoins on the market, thanks to its cash and cash-equivalent reserves and monthly reserve attestation reports. These reports have been published since the coin’s mid-2023 launch.

’s backing of required reserves. This accusation led to a quick depegging event, during which the coin dropped to a value of slightly under 95 cents. However, First Digital moved quickly to dispel the accusation, and the price of FDUSD was back to near-parity with the US dollar within hours. First Digital had confirmed that it would be seeking legal action against Justin Sun for his unfounded allegations.

It remains to be seen how the feud between Sun and First Digital plays out, but so far, the stability of the coin and the quick reaction of the issuer provide assurances that FDUSD is a solidly backed asset that may also benefit from the expected upcoming stablecoin laws.

USD1 is an upcoming stablecoin introduced by World Liberty Finance, a 

 (DeFi) venture backed by US president Donald Trump and his family. As of early April 2025, the stablecoin is not yet publicly available, though its launch is expected soon. USD1 is pegged to the greenback and backed by Treasury bills, USD cash reserves and other cash equivalents. It’s expected to be launched on Ethereum (ETH) and Binance Chain (BNB).

There’s been a lot of controversy around the coin, mainly related to the potential conflict of interest due to Donald Trump’s presidential position while having a stake in World Liberty Finance. However, few observers would disagree that the influential backing will only benefit the coin, at least probably until the end of Trump’s presidential term.

The WYST coin is a proposed stablecoin to be launched by the US state of Wyoming. Pegged to the dollar and backed by cash and US Treasury securities, this is likely the first token to be issued by a US government entity. The expected launch date for WYST is around July 2025. Given the stablecoin's state-issued nature, it’s likely to be one of the safest choices on the market, and stands to benefit from any future regulatory framework.

State governments aren’t the only influential players considering their own stablecoins. The world’s third-largest asset management firm, Fidelity Investments, is also looking into launching a stablecoin. As of early April 2025, the company has stated that it’s testing the idea, but has provided no specific details. If launched, the 

 is likely to be among the beneficiaries of any new US regulations, as Fidelity Investments certainly knows how to satisfy the country’s regulatory bodies: the investment world’s giant was founded in 1946, and has nearly $6 trillion in assets under management (AUM).

 (USDT) is the world’s leading stablecoin, based on market cap and trading volumes. Launched in 2014 by Tether Limited Inc., USDT is also among the oldest surviving stablecoins on the market. The coin is backed by US dollar reserves, as stated by its issuer. However, over the years, Tether has come under scrutiny for refusing to conduct full audits, and in 2021 the company was fined $41 million by the US Commodity Futures Trading Commission (CFTC) for misleading the public regarding the levels of its USDT-backing reserves.

Recently, the company has taken some steps to increase its transparency. In March 2025, Tether Limited Inc. appointed a new CFO and announced 

. The issuer has also signaled its preparedness to work with regulatory authorities to launch a domestic US-based stablecoin.

These moves, however, point to future intent by the company, and its current transparency level is unlikely to satisfy regulatory bodies. As such, any future US regulations in this area may pose challenges for USDT.

 is a yield-bearing synthetic stablecoin issued on the Ethereum blockchain by the 

 DeFi protocol. Unlike stablecoins backed by actual fiat reserves or similar assets, USDe is a cryptocurrency whose peg to the US dollar is algorithmically maintained. Both major regulatory bills being considered by US lawmakers (the GENIUS and STABLE Acts) take a cautious view of algorithmic stablecoins. Both bills call for a detailed study of these assets; STABLE proposes to outright ban algorithmic stablecoins for two years. Given the lawmakers' attitudes toward this type of stablecoin, USDe could struggle if the relevant legislation is passed into law.

USDS is another major algorithmic stablecoin. An upgraded version of 

, it’s issued by the Sky protocol, formerly known as MakerDAO (MKR). The coin is backed by surplus collateral that Sky users deposit in various cryptocurrencies. While it maintains overcollateralized reserves to ensure its peg, USDS isn’t directly backed by US dollars or other fiat currencies. Therefore, just like Ethena’s USDe, USDS could encounter challenges in the post-regulation period.

According to the CoinGecko crypto data portal, close to 300 stablecoin cryptocurrencies existed as of early April 2025. However, only the top seven have market caps over $1 billion, and the vast majority feature minimal market cap. Many of these coins are pegged to fiat assets via decentralized algorithms, some of which are obscure or not easily verifiable. Once the future US regulatory framework for stablecoins is implemented, these smaller coins will be unlikely to satisfy licensing requirements.

The road ahead for stablecoin regulation in the US

As of early April 2025, the crypto industry awaits the outcome of voting in both chambers of the US Congress on the GENIUS and STABLE Acts. On Apr 3, 2025, the House Financial Services Committee voted in favor of the STABLE Act, and it will now proceed to a full House vote.

These Acts have been carefully prepared to establish a unified stablecoin regulatory framework in the US. If completely adopted, they’ll result in major changes in the way stablecoins are issued and circulated. Any new federal regulatory framework will also provide certainty for financial institutions dealing with stablecoins.

Several governmental entities, including the SEC, the National Credit Union Administration (NCUA) and the Federal Reserve, will play crucial roles in the operation of regulated stablecoins in the US. Federal securities laws may also apply if any stablecoin is designated as having security status.

Under the new regulatory framework, stablecoin issuers would become subject to stringent regulatory oversight. Stablecoins that pass regulatory requirements will likely experience increased use within the traditional finance field. On the other hand, unregulated stablecoins may lose their appeal among investors unless they adapt to the new regulatory environment.

The US is still lagging behind Europe and key Asian crypto markets regarding stablecoin regulation. However, the GENIUS and STABLE Acts recently introduced to the Senate and the House of Representatives (respectively) are likely to provide the necessary regulatory environment to provide certainty to all parties involved — issuers, holders, financial institutions and regulatory bodies themselves.

If implemented in full or to a substantial degree, these regulatory laws may benefit stablecoins that are strongly backed by established fiat assets and demonstrate transparency via audits. At the same time, algorithmic stablecoins or assets without transparent reserves and audit procedures may face reduced demand.

As of early April 2025, the exact details of the expected regulatory regime aren't completely settled, and we'll need to wait on the big votes in both chambers of the US Congress.

US stablecoin regulation: Which stablecoins could benefit — and which ones pose risks?

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US stablecoin regulation: Which stablecoins could benefit — and which ones pose risks?

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Compete for 2,500 USDT USDT Every Week

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