Singapore's Central Bank, the Monetary Authority of Singapore (MAS), announced a regulatory framework aimed at enhancing the stability of single-currency stablecoins. Single-currency stablecoins are a form of cryptocurrency that is backed by a traditional asset such as national currencies, and at present, only one stablecoin has been issued in Singapore.

The framework will apply to non-bank issuers of single-currency stablecoins pegged to the Singapore dollar or any G10 currencies whose circulation exceeds Singapore's$5 million. The regulations require stablecoin issuers to maintain a portfolio of reserve assets with very low risk and a minimum base capital higher than Singapore's$1 million or half of annual operating expenses. Additionally, stablecoin issuers must fulfil requirements related to value stability, capital, redemption at par, and disclosure to users on audit results.

The rationale provided by the MAS is that well-regulated stablecoins can be a reliable medium of exchange for supporting innovation in digital asset trading on-chain whilst preserving the stability of their value. Even the US House Financial Services Committee has taken steps towards regulating cryptocurrencies, including stablecoins, by introducing a bill last month to establish a federal regulatory framework.