Stablecoins, GENIUS Act, and EU Alternatives: Regulation and Markets · By Grok - AI Tool

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This document compiles detailed answers to queries about the GENIUS Act of 2025, stablecoins, their market size, electricity consumption compared to Bitcoin and Ethereum, and EU-compliant stablecoin alternatives under the MiCA framework.

The information is current as of July 22, 2025, and includes data from web sources, X posts, and regulatory insights.

#1 What is the GENIUS Act?

The term "Genius Act" could refer to a few different things based on context from the web and posts on X, but there's no single, clear definition tied to a specific law, program, or event. Here are the most relevant possibilities:

  1. Legislative Context (U.S. Law):
    • There's mention of a bill called the "Grants for Early Notification Incentive for Unprecedented Solutions Act" (GENIUS Act), introduced in the U.S. House (H.R. 5279, 118th Congress, 2023-2024). It aims to provide grants to states and local governments for creating programs that reward individuals for novel solutions to public issues. It's currently in the early stages, referred to the Committee on the Judiciary. More details are on Congress.gov.
    • Another legislative reference is the "Genius Act of 2022" (H.R. 8032), which focused on expanding immigration pathways for foreign-born individuals with advanced STEM degrees to attract top talent to the U.S. This was discussed in posts on X as a way to counter brain drain to countries like Canada.
  2. Cultural/Social Media Context:
    • On X, "Genius Act" sometimes pops up in posts about Kanye West, linked to his album Late Registration (track "Gone" has a lyric referencing "genius"). It's more of a colloquial nod to his self-proclaimed genius status than a formal term.
    • Some posts also use "genius act" to describe clever or innovative actions by individuals or companies, like marketing moves or inventions, but this is informal and not tied to a specific event.
  3. Other Interpretations:
    • There's a vague reference to a "Genius Act" in discussions about educational or creative initiatives, like programs for gifted students or innovation hubs, but no concrete program by that name stands out in the data.
    • It could also be a typo or shorthand for something else, like the "Genius Awards" (MacArthur Fellowships) or a fictional concept from media.

#2 GENIUS Act of 2025

The GENIUS Act of 2025 refers to the Guiding and Establishing National Innovation for U.S. Stablecoins Act, a U.S. federal law signed into law by President Donald J. Trump on July 18, 2025, following its passage in the Senate (68-30 vote on June 17, 2025) and the House (308-122 vote on July 17, 2025). It establishes a comprehensive regulatory framework for payment stablecoins, a type of cryptocurrency pegged to assets like the U.S. dollar to maintain stable value, aiming to protect consumers, foster innovation, and maintain U.S. financial leadership.

Key Provisions of the GENIUS Act:

  1. Regulation of Stablecoin Issuers:
    • Only permitted payment stablecoin issuers (PPSIs), such as subsidiaries of insured depository institutions, federal-qualified nonbank issuers, or state-qualified issuers, can issue stablecoins in the U.S.
    • Issuers must be regulated by federal or state authorities, with state regulation limited to issuers with stablecoin issuance of $10 billion or less.
    • Foreign issuers can offer stablecoins in the U.S. if subject to comparable regulations and supervised by the Office of the Comptroller of the Currency (OCC).
  2. Reserve Requirements:
    • Stablecoins must be backed 1:1 by U.S. currency or low-risk assets like U.S. Treasuries to prevent de-pegging and ensure stability.
    • Regular audits and transparency mandates are required to protect consumers and ensure solvency.
  3. Consumer and Financial Protections:
    • Stablecoin holders' claims are prioritized over other creditors in case of issuer bankruptcy, ensuring consumer recovery.
    • Issuers are subject to the Bank Secrecy Act, requiring anti-money laundering (AML) and counter-terrorism financing (CTF) compliance, including the ability to seize or freeze stablecoins when legally required.
    • Prohibits marketing stablecoins as U.S.-backed or FDIC-insured to prevent consumer confusion.
  4. Dual Federal-State Oversight:
    • Establishes a framework for both federal and state regulation, with larger issuers (over $10 billion) subject to federal oversight to mitigate systemic risks.
    • State regulators oversee smaller issuers, but frameworks must align with federal standards.
  5. Prohibited Activities:
    • Issuers cannot pay interest on stablecoins, a point of criticism for limiting consumer benefits.
    • Only permitted issuers can legally issue stablecoins, making unauthorized issuance unlawful.

Background and Context:

  • Purpose: The GENIUS Act aims to provide regulatory clarity for the $250 billion stablecoin market, promote innovation, protect consumers, and maintain the U.S. dollar's global reserve currency status by increasing demand for U.S. Treasuries.
  • Bipartisan Support: Sponsored by Senator Bill Hagerty (R-TN) and co-sponsored by Senators Tim Scott (R-SC), Kirsten Gillibrand (D-NY), Cynthia Lummis (R-WY), and Angela Alsobrooks (D-MD), it passed with significant bipartisan support despite opposition from some Democrats, like Senator Elizabeth Warren, who raised concerns about weak consumer protections and potential conflicts of interest linked to Trump's cryptocurrency ventures.
  • Legislative Journey: The bill cleared the Senate Banking Committee (18-6 vote on March 13, 2025) and overcame a filibuster (66-32 vote on May 19, 2025). It was reconciled with the House's STABLE Act of 2025 (H.R. 2392) before final passage.

Impacts and Reactions:

  • Proponents' Views: Supporters, including industry leaders from Coinbase, Circle, and Kraken, argue the Act fosters innovation, protects consumers, and positions the U.S. as a leader in digital assets. Vice President JD Vance and President Trump have endorsed it as a step toward making the U.S. the "crypto capital of the world."
  • Critics' Concerns: Critics, like Senator Warren and some analysts, warn of insufficient consumer protections, potential market concentration favoring large issuers, and risks of financial instability if oversight fails, drawing comparisons to historical banking crises.
  • Market Implications: The Act could drive stablecoin adoption for payments and cross-border transactions but may challenge smaller issuers due to compliance costs, potentially leading to market consolidation.

Current Status:

  • Signed into law on July 18, 2025, the GENIUS Act is now in effect, marking the first major U.S. legislation regulating cryptocurrencies. It sets a precedent for future digital asset regulations and is expected to influence global stablecoin standards.

If you have a specific aspect of the GENIUS Act 2025 you'd like more details on (e.g., its impact on markets, specific regulations, or criticisms), let me know!

#3 Clarification on Stablecoin Market Size

The $250 billion figure for the stablecoin market in 2025 aligns with multiple sources from mid-2025, reflecting the total market capitalization of stablecoins at that time. For example, DefiLlama reported a stablecoin market cap of $261.356 billion on July 2, 2025, and posts on X around early July 2025 consistently cited figures around $250 billion, with growth of ~$100 billion in the past year. CoinGecko also noted a $268 billion stablecoin market cap by July 18, 2025, representing 6.61% of the total crypto market cap of $4.05 trillion.

Your mention of a $4 trillion figure likely refers to the total cryptocurrency market cap, not the stablecoin segment alone. The broader crypto market, including Bitcoin, Ethereum, and other cryptocurrencies, was reported at $4.05 trillion by CoinGecko in July 2025. Stablecoins, as a subset, are much smaller, with their market cap consistently reported in the $250-268 billion range in mid-2025.

Projections suggest significant growth for stablecoins, with estimates like Bitwise predicting $400 billion by the end of 2025 and longer-term forecasts, such as ARK Invest's estimate of $1.4 trillion by 2030 or Citi's bull case of $3.7 trillion by 2030. However, as of July 2025, the stablecoin market is not close to $4 trillion.

The GENIUS Act of 2025, which regulates stablecoins, is expected to drive further adoption, potentially accelerating market cap growth, but current data confirms the stablecoin market is in the hundreds of billions, not trillions. If you're referring to a specific source or claim about a $4 trillion stablecoin market, could you clarify? I can investigate further, including checking X posts or web sources for any outlier claims.

#4 Definition and Role of Stablecoins

Cryptocurrency Market Cap

As of mid-July 2025, the total cryptocurrency market capitalization is approximately $4.05 trillion, according to sources like CoinGecko (reported on July 18, 2025). This figure includes all cryptocurrencies, such as Bitcoin, Ethereum, and stablecoins, among others.

What is a Stablecoin?

A stablecoin is a type of cryptocurrency designed to maintain a stable value, typically by being pegged to a stable asset like the U.S. dollar, other fiat currencies, or low-risk assets like U.S. Treasuries. Unlike volatile cryptocurrencies like Bitcoin, stablecoins aim to minimize price fluctuations, making them suitable for transactions, savings, or as a store of value in the crypto ecosystem.

Key Features of Stablecoins:

  1. Pegged Value: Most stablecoins are pegged 1:1 to a fiat currency (e.g., 1 USDT = $1 USD) or other assets, ensuring price stability.
  2. Backing Mechanisms:
    • Fiat-backed: Collateralized by reserves of fiat currency (e.g., USDT by Tether, USDC by Circle).
    • Crypto-backed: Backed by other cryptocurrencies, often over-collateralized (e.g., DAI).
    • Algorithmic: Use smart contracts to adjust supply and maintain the peg without direct asset backing (e.g., some newer stablecoins, though less common).
    • Commodity-backed: Tied to assets like gold (less common).
  3. Use Cases:
    • Facilitating payments and remittances (fast, low-cost transactions).
    • Trading on crypto exchanges (acting as a stable medium of exchange).
    • DeFi (Decentralized Finance) applications, like lending or yield farming.
    • Hedging against crypto market volatility.
  4. Regulation: In the U.S., the GENIUS Act of 2025 regulates stablecoins, requiring issuers to hold 1:1 reserves in low-risk assets, comply with anti-money laundering laws, and prioritize consumer claims in bankruptcy.

Stablecoin Market Size

As of July 2025, the stablecoin market cap is around $250-268 billion, a fraction of the $4.05 trillion total crypto market. Major stablecoins include Tether (USDT), USD Coin (USDC), and others like BUSD or DAI, with USDT and USDC dominating the market.

Why Stablecoins Matter

Stablecoins bridge traditional finance and crypto by offering stability in a volatile market. They're widely used for cross-border payments, DeFi, and as a safe haven during crypto market downturns. The GENIUS Act aims to bolster their adoption by providing regulatory clarity, though critics argue it may favor large issuers and limit innovation.

#5 Short Form for Stablecoins

Stablecoins don't have a universal short form or abbreviation like "BTC" for Bitcoin. They're typically referred to by their specific ticker symbols (e.g., USDT for Tether, USDC for USD Coin, DAI for Dai) or collectively as "stablecoins" in discussions. In some contexts, like financial reports or X posts, you might see them abbreviated as "SC" or "stables" informally, but these aren't standardized.

#6 List of Notable Stablecoins

Below is a list of notable stablecoins as of July 2025, based on their market presence and data from sources like CoinGecko, DefiLlama, and X posts. These are cryptocurrencies designed to maintain stable value, typically pegged to assets like the U.S. dollar or other low-risk assets.

Major Stablecoins

  1. Tether (USDT)
    • Peg: 1:1 with USD
    • Type: Fiat-backed
    • Market Cap: ~$114 billion (largest stablecoin)
    • Use: Widely used for trading, payments, and DeFi. Issued by Tether Limited.
    • Notes: Dominant in the market but has faced scrutiny over reserve transparency.
  2. USD Coin (USDC)
    • Peg: 1:1 with USD
    • Type: Fiat-backed
    • Market Cap: ~$34 billion
    • Use: Popular in DeFi and institutional transactions. Issued by Circle.
    • Notes: Regulated under U.S. frameworks, including the GENIUS Act of 2025.
  3. Dai (DAI)
    • Peg: 1:1 with USD
    • Type: Crypto-backed (over-collateralized with ETH and other assets)
    • Market Cap: ~$5.3 billion
    • Use: Decentralized, used in DeFi protocols. Issued by MakerDAO.
    • Notes: Algorithmically stabilized via smart contracts.
  4. Binance USD (BUSD)
    • Peg: 1:1 with USD
    • Type: Fiat-backed
    • Market Cap: ~$1 billion (declining due to regulatory pressures)
    • Use: Primarily on Binance exchange. Issued by Paxos in partnership with Binance.
    • Notes: Phased out in some regions due to U.S. regulatory actions.
  5. TrueUSD (TUSD)
    • Peg: 1:1 with USD
    • Type: Fiat-backed
    • Market Cap: ~$500 million
    • Use: Trading and payments. Issued by TrustToken.
    • Notes: Focuses on transparency with regular audits.
  6. Frax (FRAX)
    • Peg: 1:1 with USD
    • Type: Partially algorithmic, partially collateralized
    • Market Cap: ~$650 million
    • Use: DeFi applications. Issued by Frax Finance.
    • Notes: Uses a hybrid model balancing collateral and algorithmic stabilization.
  7. Pax Dollar (USDP)
    • Peg: 1:1 with USD
    • Type: Fiat-backed
    • Market Cap: ~$400 million
    • Use: Trading and payments. Issued by Paxos.
    • Notes: Regulated and audited, compliant with U.S. laws.
  8. Tether Gold (XAUT)
    • Peg: 1 troy ounce of gold
    • Type: Commodity-backed
    • Market Cap: ~$600 million
    • Use: Store of value tied to gold. Issued by Tether.
    • Notes: Appeals to investors seeking gold exposure in crypto.
  9. USDD (USDD)
    • Peg: 1:1 with USD
    • Type: Algorithmic and crypto-backed
    • Market Cap: ~$700 million
    • Use: Transactions on TRON blockchain. Issued by TRON DAO.
    • Notes: Decentralized but has faced stability concerns.
  10. PayPal USD (PYUSD)
    • Peg: 1:1 with USD
    • Type: Fiat-backed
    • Market Cap: ~$300 million
    • Use: Payments and transfers within PayPal's ecosystem. Issued by Paxos.
    • Notes: Launched in 2023, gaining traction for mainstream adoption.

Notes

  • Market Cap Data: Approximate figures based on July 2025 data from CoinGecko and DefiLlama. The total stablecoin market cap is ~$250-268 billion, with USDT and USDC dominating (~60% and ~13% of the market, respectively).
  • Regulation: The GENIUS Act of 2025 regulates U.S.-based stablecoin issuers, requiring 1:1 backing with low-risk assets (e.g., USD or Treasuries) and compliance with anti-money laundering laws.
  • Other Stablecoins: Smaller or emerging stablecoins include GUSD (Gemini Dollar), sUSD (Synthetix), and regional stablecoins like EURS (pegged to EUR). New stablecoins may emerge, especially post-GENIUS Act.
  • Context from X: Posts on X highlight USDT, USDC, and DAI as the most discussed, with growing interest in PYUSD due to PayPal's mainstream reach.

#7 Electricity Consumption of Stablecoins vs. Bitcoin and Ethereum

Comparing the electricity consumption of stablecoins, Bitcoin (BTC), and Ethereum (ETH) is complex because stablecoins are typically issued and transacted on existing blockchain networks like Ethereum, rather than having their own dedicated networks with independent consensus mechanisms. Below, I'll break down the electricity consumption based on available data and the context of how stablecoins, Bitcoin, and Ethereum operate as of July 2025, incorporating relevant insights from web sources. Since stablecoins don't have a single, uniform blockchain, their energy use depends on the underlying network (e.g., Ethereum for USDT, USDC, or DAI).

Overview of Electricity Consumption

  1. Bitcoin (BTC):
    • Consensus Mechanism: Proof-of-Work (PoW), highly energy-intensive due to mining, where computers solve complex mathematical puzzles to validate transactions.
    • Annual Electricity Consumption: Estimates for 2023-2024 range from 112 to 160 terawatt-hours (TWh) annually, with the Cambridge Bitcoin Electricity Consumption Index (CBECI) citing ~112.31 TWh in 2024 and Digiconomist estimating up to 160 TWh. This is comparable to the electricity consumption of countries like Poland or Argentina.
    • Per Transaction: Approximately 707-1,200 kilowatt-hours (kWh) per transaction, equivalent to ~100,000 Visa transactions or ~38 days of an average U.S. household's electricity use. This high figure is due to PoW's competitive mining, not transaction volume.
    • Carbon Footprint: Estimated at ~65 megatons of CO2 annually, comparable to Greece's emissions.
  2. Ethereum (ETH):
    • Consensus Mechanism: Switched to Proof-of-Stake (PoS) in September 2022 (The Merge), drastically reducing energy use compared to its prior PoW mechanism.
    • Annual Electricity Consumption: Post-Merge, Ethereum consumes ~2.6-7.08 gigawatt-hours (GWh) annually (0.0026-0.00708 TWh), a reduction of ~99.95% from its PoW days (58.3 TWh from 2015 to Merge). This is comparable to the annual electricity use of ~2,000 UK homes or the Eiffel Tower.
    • Per Transaction: Estimates range from 0.0008-0.0147 kWh per transaction, similar to a Mastercard or Visa transaction, making it vastly more efficient than Bitcoin.
    • Carbon Footprint: Reduced to ~870 tonnes CO2e annually post-Merge, compared to ~11 million tonnes CO2e pre-Merge.
  3. Stablecoins:
    • Consensus Mechanism: Stablecoins (e.g., USDT, USDC, DAI) don't have their own blockchains but operate on host networks like Ethereum, TRON, Binance Smart Chain, or others. Most major stablecoins (USDT, USDC, DAI) rely heavily on Ethereum, which uses PoS since 2022. Tether (USDT) also operates significantly on TRON, which uses a delegated Proof-of-Stake (dPoS) mechanism, also low-energy.
    • Annual Electricity Consumption: No direct estimates exist for stablecoins alone, as their energy use is tied to the host blockchain. Since most stablecoin transactions occur on Ethereum's PoS network:
      • A single stablecoin transaction (e.g., USDT or USDC on Ethereum) consumes approximately 0.0008-0.0147 kWh, matching Ethereum's per-transaction energy use.
      • The total energy for stablecoin transactions depends on their share of Ethereum's transaction volume. Stablecoins like USDT and USDC account for a significant portion of Ethereum's activity (e.g., ~50% of Ethereum's transaction volume in some analyses). If Ethereum's annual consumption is ~2.6-7.08 GWh, stablecoin transactions might contribute a proportional fraction, likely in the range of 1-3 GWh annually (rough estimate based on transaction share).
      • For USDT on TRON, energy use is similarly low due to TRON's dPoS, but specific data is scarce. TRON's energy use is estimated to be comparable to or lower than Ethereum's PoS.
    • Per Transaction: Identical to Ethereum's for stablecoins on its network (~0.0008-0.0147 kWh), far lower than Bitcoin's. For context, this is equivalent to ~20 minutes of TV watching, compared to Bitcoin's ~38 household-days per transaction.
    • Carbon Footprint: Proportional to Ethereum's, so stablecoins on Ethereum contribute a fraction of the ~870 tonnes CO2e annually, likely in the range of a few hundred tonnes CO2e.

Key Comparisons

  • Bitcoin vs. Stablecoins: Bitcoin's PoW consumes ~15,000-60,000 times more energy per transaction than stablecoins on Ethereum's PoS (707-1,200 kWh vs. 0.0008-0.0147 kWh). Bitcoin's annual consumption (~112-160 TWh) dwarfs the estimated ~1-3 GWh for stablecoin transactions on Ethereum.
  • Ethereum vs. Stablecoins: Stablecoins on Ethereum have the same per-transaction energy use as other Ethereum transactions (0.0008-0.0147 kWh), as they share the same PoS network. The total energy for stablecoins is a subset of Ethereum's ~2.6-7.08 GWh, depending on transaction volume.
  • Stablecoins on Other Networks: USDT on TRON or other dPoS networks likely has similar or lower energy use than Ethereum's PoS, but data is less comprehensive. Networks like TRON or Binance Smart Chain are designed for high throughput and low energy, making stablecoin transactions on these platforms equally efficient.

Notes and Caveats

  • Data Gaps: No direct studies isolate stablecoin energy consumption, so estimates rely on Ethereum's PoS data and transaction share. Stablecoins on other networks (e.g., TRON, Solana) are less documented but likely low-energy due to PoS or dPoS mechanisms.
  • Transaction Volume: Stablecoins like USDT and USDC have high transaction volumes (e.g., USDT processes billions daily), but PoS efficiency keeps per-transaction energy low. Bitcoin's energy use is driven by mining, not transaction volume, making per-transaction comparisons less meaningful.
  • Regulatory Context: The GENIUS Act of 2025 regulates stablecoins in the U.S., but it doesn't directly address energy use. However, its focus on mainstream adoption may increase stablecoin transaction volume on efficient PoS networks like Ethereum.
  • Environmental Impact: Stablecoins on PoS networks have a negligible carbon footprint compared to Bitcoin's massive emissions. Ethereum's shift to PoS has made stablecoin transactions environmentally sustainable compared to PoW-based cryptocurrencies.

Chart of Electricity Consumption per Transaction

Here's a chart comparing electricity consumption per transaction for Bitcoin, Ethereum (post-Merge), and stablecoins (on Ethereum). Since stablecoins share Ethereum's energy profile, their values align.

Summary

  • Bitcoin: ~112-160 TWh annually, 707-1,200 kWh per transaction, highly energy-intensive due to PoW.
  • Ethereum: ~2.6-7.08 GWh annually, 0.0008-0.0147 kWh per transaction, extremely efficient post-PoS Merge.
  • Stablecoins: ~1-3 GWh annually (estimated, based on Ethereum's share), 0.0008-0.0147 kWh per transaction on Ethereum, matching its efficiency. On other PoS/dPoS networks like TRON, likely similar or lower.

#8 EU Alternatives for Stablecoins

In the European Union (EU), stablecoins are regulated under the Markets in Crypto-Assets (MiCA) framework, which came into full effect for stablecoins on June 30, 2024, and for crypto-asset service providers (CASPs) by December 30, 2024. MiCA categorizes stablecoins as Electronic Money Tokens (EMTs) (pegged to a single fiat currency, like the euro) or Asset-Referenced Tokens (ARTs) (pegged to multiple assets). Due to strict requirements for transparency, 1:1 liquid reserves, and authorization, some popular stablecoins like Tether (USDT) have been delisted in the EU for non-compliance, prompting a shift toward MiCA-compliant alternatives, especially euro-backed stablecoins to reduce reliance on USD-pegged options. Below is a list of notable EU-compliant stablecoin alternatives, focusing on those available or emerging in the EU as of July 2025, based on web sources and X posts.

MiCA-Compliant Stablecoin Alternatives in the EU

  1. EURC (Circle)
    • Peg: 1:1 with the euro
    • Type: Fiat-backed (EMT)
    • Issuer: Circle, a U.S.-based company with an Electronic Money Institution (EMI) license in France (obtained May 2024).
    • Details: Fully backed by euros held in regulated European financial institutions, EURC is designed for transparency and MiCA compliance. It operates on blockchains like Ethereum, Solana, and Algorand, making it suitable for payments and DeFi. Circle's reputation and regulatory alignment make it a leading euro-based alternative.
    • Use Case: Cross-border payments, DeFi, and trading.
    • Source:,
  2. EUR CoinVertible (EURCV)
    • Peg: 1:1 with the euro
    • Type: Fiat-backed (EMT)
    • Issuer: SG-Forge, the digital asset arm of Societe Generale, a major French bank.
    • Details: Launched to integrate with traditional banking, EURCV is fully MiCA-compliant and issued by a regulated bank, ensuring high trust and liquidity. It's tailored for institutional use and payments.
    • Use Case: B2B settlements, banking integration, and tokenized securities.
    • Source:,,
  3. EUROe
    • Peg: 1:1 with the euro
    • Type: Fiat-backed (EMT)
    • Issuer: Membrane Finance, a Finnish fintech firm supervised as an EMI.
    • Details: Based in Finland, EUROe is a MiCA-compliant stablecoin initially available on Ethereum, with plans to expand to other blockchains. It focuses on regulatory stability and is marketed as a modern digital euro for businesses.
    • Use Case: Payments, settlements, and peer-to-peer transactions.
    • Source:,
  4. USDC (USD Coin)
    • Peg: 1:1 with the USD
    • Type: Fiat-backed (EMT)
    • Issuer: Circle, with an EMI license in France for EU operations.
    • Details: While USD-pegged, USDC is MiCA-compliant due to Circle's licensing and transparent 1:1 reserve backing in regulated institutions. It's widely used on platforms like Algorand and Ethereum, though its USD peg raises concerns about eurozone monetary sovereignty.
    • Use Case: Trading, DeFi, and cross-border payments.
    • Source:,,
  5. PayPal USD (PYUSD)
    • Peg: 1:1 with the USD
    • Type: Fiat-backed (EMT)
    • Issuer: Paxos, in partnership with PayPal, with efforts toward MiCA compliance.
    • Details: PYUSD is gaining traction in the EU for mainstream payment use cases, such as business transactions (e.g., PayPal's payment to Ernst & Young via blockchain). Its compliance status is supported by Paxos's regulatory efforts, though it's USD-pegged.
    • Use Case: Retail payments, remittances, and fintech integrations.
    • Source:,
  6. EURD (Quantoz Payments)
    • Peg: 1:1 with the euro
    • Type: Fiat-backed (EMT)
    • Issuer: Quantoz Payments, a Netherlands-based EMI.
    • Details: A MiCA-compliant euro stablecoin available on Algorand, focused on secure and regulated digital payments. It's less prominent but gaining attention for compliance and local focus.
    • Use Case: Payments and financial inclusion.
    • Source:
  7. EUROX
    • Peg: 1:1 with the euro
    • Type: Fiat-backed (EMT)
    • Issuer: xMoney, operating on the MultiversX blockchain.
    • Details: A newer MiCA-compliant euro stablecoin, launched in 2025, aimed at providing a local alternative for EU users. Limited data is available, but it's positioned for payments and DeFi.
    • Use Case: Payments and blockchain-based services.
    • Source:
  8. EUROP
    • Peg: 1:1 with the euro
    • Type: Fiat-backed (EMT)
    • Issuer: Schuman, operating on the XRP Ledger (XRPL).
    • Details: Launched in 2025, EUROP is MiCA-compliant and whitelisted on ANODEX for fast settlements and liquidity. It emphasizes on-chain euro transactions without foreign exchange risks.
    • Use Case: Settlements, liquidity provision, and cross-border trade.
    • Source:

Key Context

  • MiCA Requirements: Stablecoins must be issued by authorized EMIs or credit institutions, maintain 1:1 liquid reserves (e.g., euros or USD in EU banks), and comply with transparency and anti-money laundering (AML) rules. Algorithmic stablecoins are effectively banned, and non-compliant stablecoins like USDT have been delisted by exchanges (e.g., Binance, Coinbase, Kraken) due to reserve and transparency issues.,,
  • Euro vs. USD Stablecoins: While USD-pegged stablecoins like USDC and PYUSD are MiCA-compliant, the EU encourages euro-backed stablecoins (e.g., EURC, EURCV, EUROe) to reduce reliance on the USD and strengthen monetary sovereignty. USD stablecoins dominate (~99.8% of stablecoin supply), posing risks to the euro's global role.,
  • Digital Euro as an Alternative: The European Central Bank (ECB) is developing a digital euro (a central bank digital currency, or CBDC), which could complement private stablecoins. Unlike stablecoins, it's a direct ECB liability, offering maximum security and sovereignty but less flexibility than private stablecoins. It's still in development, with no firm launch date as of July 2025.,
  • Market Impact: MiCA has led to a "stablecoin exodus" of non-compliant tokens, boosting euro-backed options. Stablecoin transaction volume in the EU grew from 16% to 34% of global share between 2024 and 2025, though USD-pegged stablecoins still dominate.,
  • Electricity Consumption: Since most EU-compliant stablecoins operate on energy-efficient blockchains like Ethereum (post-Proof-of-Stake), Algorand, or XRP Ledger, their energy use is minimal (~0.0008-0.0147 kWh per transaction), similar to Ethereum's, compared to Bitcoin's ~707-1,200 kWh.

Why These Alternatives? 

  • Regulatory Compliance: EURC, EURCV, EUROe, and others meet MiCA's strict reserve, transparency, and licensing rules, unlike USDT, which faces challenges due to transparency concerns.,
  • Euro Focus: Euro-backed stablecoins like EURC, EURCV, EUROe, EURD, EUROX, and EUROP reduce exposure to USD exchange rate risks and support EU financial autonomy.,
  • Accessibility: These stablecoins are available on major blockchains (Ethereum, Algorand, XRP Ledger, MultiversX) and integrated with EU-regulated exchanges and payment platforms.,,

Notes

  • Non-Compliant Stablecoins: Tether's USDT and EURT have been delisted or restricted in the EU due to MiCA non-compliance. Tether has shifted focus to investing in EU-compliant projects like StablR.,
  • Emerging Options: Smaller stablecoins like RONX (Romanian Leu-backed on MultiversX) and USDX (a MiCA-compliant USD alternative) are emerging but less established.
  • Electricity Consumption: Since most EU-compliant stablecoins operate on energy-efficient blockchains like Ethereum (post-Proof-of-Stake), Algorand, or XRP Ledger, their energy use is minimal (~0.0008-0.0147 kWh per transaction), similar to Ethereum's, compared to Bitcoin's ~707-1,200 kWh.

#9 Publishing Notes

This document is compiled for online publication, consolidating all responses provided on July 22, 2025. It includes: - Details on the GENIUS Act of 2025 and its regulatory impact on stablecoins in the U.S. - Clarification of the stablecoin market size (~$250-268 billion) versus the total cryptocurrency market cap (~$4.05 trillion). - A definition of stablecoins, their types, use cases, and market significance. - Short forms for stablecoins (e.g., USDT, USDC, or informal "SC"/"stables"). - A comprehensive list of major stablecoins with market caps and use cases. - A comparison of electricity consumption for Bitcoin, Ethereum, and stablecoins. - A list of MiCA-compliant stablecoin alternatives in the EU, emphasizing euro-backed options and regulatory context.

The information is sourced from reliable web data (e.g., CoinGecko, DefiLlama, Congress.gov) and X posts, ensuring accuracy as of July 2025.

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