Global Regulators Align as Crypto Transforms From Asset Class to Monetary Infrastructure

Global crypto regulation is entering a phase of convergence, with policymakers across jurisdictions increasingly aligned on core principles, regulatory objectives, and high-level frameworks for digital assets.

In the 4th edition of its Global Crypto Regulation Report 2026, PwC highlights a pivotal shift: crypto assets are moving decisively into the heart of the monetary system. According to the firm, digital assets are no longer confined to trading and speculative markets, they are now being actively used to move, settle, and manage money.

Crypto assets are increasingly performing monetary functions that were once the exclusive preserve of banks and traditional payment networks. Banks, asset managers, payment providers, and large corporates are now embedding digital assets directly into core infrastructure, balance sheets, and operating models. PwC notes that this evolution is no longer optional or peripheral, but structural.

Matt Blumenfeld, Global/US Digital Assets Lead at PwC US, emphasizes that regulatory momentum is now being driven by market realities rather than abstract policy debates.

“Regulation of crypto is no longer shaped from the outside. It is being pulled into place by market reality”, he said.

Regulators are increasingly clarifying pathways for digital assets to qualify as eligible collateral for margining and risk mitigation, including under uncleared margin rules. Recent regulatory changes and supervisory guidance are making approvals more feasible where assets meet standards for liquidation, valuation, custody, operational resilience, and enforceability.

This is laying the foundation for broader institutional adoption of tokenized assets and select cryptocurrencies in collateral management and derivatives markets.

Stablecoins: From Design to Market Architecture

PwC observes that the global regulatory approach to stablecoins has shifted decisively from design to implementation. Across major jurisdictions, there is a growing consensus on foundational regulatory principles, including full reserve backing, redemption at par, segregation of customer assets, and strong Anti-Money Laundering and Counter-Financing of Terrorism controls.

Rather than mandating state-only solutions, regulation is increasingly legitimizing private stablecoins. This approach enables “co-opetition” between banks and fintechs, fostering shared infrastructure and public-private cooperation while preserving long-term competition over specialization, user experience, and network control.

According to PwC, regulatory clarity is transforming stablecoins from a policy experiment into core financial market infrastructure. Frameworks such as MiCAR in Europe, MAS regulations in Singapore, and forthcoming US rules now define what a regulated stablecoin looks like and how it can operate within existing financial systems.

This clarity provides banks and non-bank issuers with the legal certainty required to innovate within the regulatory perimeter. Because no single institution can dominate the stablecoin market, collaboration has become a key driver of competition.

Banks, payment firms, and exchanges are increasingly working together on shared settlement rails and tokenized deposit networks to achieve liquidity and adoption at scale.

The Dollar as a Network, Not Just a Reserve Asset

PwC also underscores the growing geopolitical and monetary implications of stablecoins. Dollar-backed stablecoins are reshaping how the US dollar functions as the world’s reserve currency.

By enabling individuals and businesses, particularly in emerging markets to hold and transfer dollar value without direct access to US banks, stablecoins are turning the dollar into a digital reserve network.

For populations facing currency volatility or limited banking access, stablecoin wallets increasingly function as de facto digital dollar accounts. This technological expansion is reinforcing dollar dominance through infrastructure rather than policy.

Laura Talvitie, Digital Assets Regulatory Lead at PwC UK, warns that regulatory inaction carries strategic risks:

“With over USD 300 billion in stablecoins in circulation and more than 99 percent pegged fo the US dollar, many jurisdictions risk becoming spectators in a market they should help shape. The challenge is no longer whether to regulate, but how leading financial centres create the conditions for non-dollar stablecoins and tokenized money to scale safely and competitively, or risk the next wave of digital finance being driven from a small number of global hubs”, she said.

Outlook

As digital assets become embedded within mainstream financial infrastructure, jurisdictions that provide clear, balanced, and innovation-friendly regulatory frameworks are likely to emerge as global hubs for tokenized finance.

Stablecoins in particular, are poised to play a central role in cross-border payments, collateral management, and financial inclusion. However, the dominance of dollar-pegged stablecoins also raises strategic questions for other currencies and financial centers.