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Crypto generated thousands of headlines this week. Only a handful are worth your attention.

MoonLetter Deep Dive

🌙 Stablecoins Are Becoming Too Big to Ignore

Stablecoins have crossed a line few investors are talking about.

There was a time when stablecoins were mostly a crypto convenience.

A place to park money between trades.

Today, central banks, finance ministries and international regulators are writing reports about them.

That’s a remarkable shift.

Not because stablecoins suddenly changed.

Because the world around them did.

Why everyone’s talking about it 👀

This week, the Bank for International Settlements (BIS)—often called the central bank for central banks—published research arguing that US dollar stablecoins are weakening capital controls and accelerating unofficial dollarization.

At the same time, the EU’s MiCA framework is now fully in force, the U.S. is finalizing the GENIUS Act rulebook, and countries like Japan and South Korea are building legal frameworks around stablecoins rather than trying to ban them.

For years the debate was simple:

“Will governments allow stablecoins?”

The conversation has evolved.

Now it’s:

“How do we regulate something millions of people are already using?”

That’s a very different question.

What’s actually happening 🧱

Stablecoins are quietly becoming financial infrastructure.

●  Businesses use them for international payments. ●  People in countries with unstable currencies use them as digital dollars. ●  Banks are exploring them for settlement. ●  Governments are studying them because they increasingly sit alongside the traditional financial system instead of outside it.

That’s why the BIS worries about capital controls.

Historically, if a country wanted to limit money leaving its borders, it mainly had to supervise banks.

Stablecoins change that equation. Money can now move across borders with far fewer intermediaries.

From the perspective of users, that’s a feature. From the perspective of policymakers, it’s a challenge. Both can be true at the same time.

What investors often get wrong 🤔

Many investors still think stablecoins are just another crypto product.

I think that’s becoming outdated.

Stablecoins are increasingly competing with bank deposits, correspondent banking and international payment networks—not with Bitcoin or Ethereum.

That’s a much bigger market.

Another common misunderstanding is assuming regulation is automatically bad news.

Sometimes regulation slows innovation. Sometimes it unlocks adoption.

A multinational company is far more likely to use a regulated stablecoin than an unregulated one. Ironically, the rules that frustrate crypto purists may be the same rules that bring trillions of dollars into the ecosystem.

My perspective 🔭

The most interesting thing about stablecoins isn’t their technology.

It’s who is paying attention.

Five years ago, stablecoins were mostly discussed on Crypto Twitter.

Today they’re discussed by central bankers, finance ministers and commercial banks.

That tells me we’ve crossed an invisible line.

When governments stop asking whether something should exist and start debating how to supervise it, they’ve usually accepted that it’s here to stay.

That doesn’t mean every stablecoin succeeds. It doesn’t mean regulation will be smooth. And it certainly doesn’t mean governments are enthusiastic.

It simply means stablecoins have become too economically relevant to ignore.

That’s a much stronger signal than another week of price action.

The question I’ll be watching next isn’t whether stablecoins keep growing.

It’s which jurisdictions become the most attractive places to issue, hold and use them. Because once the rules are clear, capital tends to follow.

Three key takeaways 1 Stablecoins are becoming financial infrastructure, not just crypto infrastructure. 2 The regulatory debate has shifted from “whether” to “how.” That’s a sign of maturity. 3 The winners may not be the biggest stablecoins today—but the ones that earn the most trust tomorrow.

That’s all for today. Go touch some grass. Bitcoin can survive a few hours without you. 🌱

Lucas
@ MoonLetter Research