The stablecoin market has expanded to over $271.4 billion by August 2025, with USDT and USDC dominating the sector. Despite their growth, stablecoins encounter significant risks, including centralization, liquidity issues, and increasing regulatory scrutiny. Recent regulatory developments highlight a global shift towards stringent compliance. Hong Kong's Stablecoin Ordinance, effective August 1, 2025, mandates licenses and strict asset management, setting a high regulatory standard. Similarly, the US GENIUS Act, enacted on July 18, 2025, underscores the emphasis on transparency and compliance. These measures are reshaping the stablecoin landscape, challenging issuers to adapt to new regulatory environments while maintaining their role as a bridge between traditional finance and blockchain.