The word “stablecoin” may have a pleasant ring to it — isn’t it nice to have something stable in the volatile cryptoverse? — but for critics, they are nothing short of a ticking time bomb. Whether that’s true or not, the push for regulating stablecoins is gaining momentum. Both the United States of America and the European Union are closer to formalizing the rules. This is despite the fact that Washington and Brussels have a history of financial regulation. Financial Action Task Force’s guidelines on crypto over the past few years, it’s safe to say that the rest of the world will be following suit.

However, regulation of stablecoins can be difficult because they come in many shapes and sizes. This makes it impossible to find a solution that works for everyone. The top three stablecoins by market cap — (USDTUSDCoin (USDC) and Binance USD (BUSD) — are all pegged against the U.S. dollar. They are supported by greenbacks, and other financial instruments according to the developers. This allows them to remain at $1.