Stablecoins in the Eye of the Storm: In 2025, Regulation and Sanctions Will Redefine the Crypto World

BlockBeats News, January 12 — As we enter 2026, the main narrative of the crypto industry has become clear: 2025 will no longer be a year of speculation, but a year when regulation, infrastructure, and real-world applications are fully implemented.

Matthias Bauer-Langgartner, Head of Policy for Europe at Chainalysis, stated that stablecoins have become the core of this round of transformation. Although bitcoin still accounts for about half of the market capitalization, stablecoins now contribute to over 50% of global on-chain transaction volume, deeply embedded in payment, remittance, and trading systems, and have officially taken center stage in regulation and compliance. He stated bluntly: "2025 is the year of stablecoins."

Due to their high liquidity and price stability, stablecoins are widely used in legitimate scenarios, but are also exploited by illicit funds. However, centralized issuers have the ability to freeze and destroy assets, making stablecoins a key tool for regulators to combat financial crime.

Chainalysis data shows that in 2025, illicit crypto fund flows reached $154 billions, a year-on-year surge of 162%, with a significant increase in activities by state actors and sanction evasion. However, such activities still account for less than 1% of total crypto transaction volume.

Analysts believe that as regulatory frameworks such as MiCA enter the implementation stage, stablecoins are becoming a key node connecting the crypto market, geopolitics, and financial regulation, and may continue to shape the core narrative of 2026.