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.

Regulating stablecoins, however, is not an easy task. Because these coins are all different shapes and sizes, it’s difficult to come up with a single solution. 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.