The discussion begins with the Hong Kong Web3 Blueprint Report. Musheer and Sean tell Regulatory Ramblings host Ajay Shamdasani that the document should be viewed as a roadmap to accelerate blockchain development in the territory. To this end, Web3 Harbour partnered with PwC Hong Kong to launch five action groups this August on stablecoins, funds, and other critical segments.
The report calls for coordinated action across investment, talent, policy, infrastructure, and standards to speed Web 3.0 development in the SAR. It stresses decentralization’s “transparency, security, and user empowerment.”
As the SCMP noted, the blueprint seeks to leverage “Web3 superpowers” by focusing on five enablers: talent, market infrastructure, standards, regulation, and funding. Priority areas include open finance, trade finance, capital markets, asset management, and carbon markets. The report drew on input from Web3 Harbour members and other industry stakeholders.
Web3 Harbour chairman Gary Liu, formerly CEO of the Post, emphasized the importance of private–public collaboration, while stressing the report primarily guides the private sector. The Blueprint, the guests noted, is not just a document—it is a transformation roadmap. By aligning regulation, standards, infrastructure, and talent, it positions Hong Kong as a Web3 finance hub.
Hong Kong has clear advantages to capture a share of global Web3 opportunities, but Musheer and Sean ask: how do we get there? They outline why the report was written now, their conclusions, and the policies they advocate. The five enablers—talent, infrastructure, standards, regulation, and funding—are essential to making Hong Kong a Web3-enabled financial centre. Properly applied, Web3 technologies can drive innovation, create growth, and strengthen the city’s leadership in digital finance.
The conversation then shifts to the U.S., where late July saw the passage of the GENIUS Act during “Crypto Week.” On July 18, the House of Representatives approved both the CLARITY market structure bill and the GENIUS Act, the latter signed by President Trump. Analysts called these moves historic, signaling that “Crypto’s time has come.”
The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) is the first standalone law targeting stablecoins. TRM Labs data show stablecoins now represent over 60% of all crypto transaction volume—up from 35% two years ago—with over 90% pegged to the U.S. dollar. While TRM estimates 99% of activity is licit, their speed and liquidity make them attractive for illicit uses, including ransomware, fraud, and terrorist financing.
The Act imposes reserve requirements, consumer protection, and AML rules on issuers, aiming to stabilize and secure stablecoin markets and integrate them more fully into the U.S. financial system. Meanwhile, the CLARITY Act addresses broader market structure issues. The Senate is drafting its own version, with reconciliation expected this fall. Together, these bills mark a turning point in digital asset regulation, balancing innovation with risk management.
Meanwhile, in Hong Kong, the city’s Stablecoins Ordinance (Cap. 656) and HKMA guidelines took effect on 1 August 2025, with a transitional period for issuance only. This regime marks another milestone for the city’s digital assets market. King & Wood Mallesons noted its relevance to both primary issuers and secondary transactions involving Hong Kong, stressing that even foreign institutions must heed its restrictions if a Hong Kong nexus exists.
The Ordinance regulates:
– Issuers of stablecoins and their structures
– Offers of stablecoins
– Market integrity and conduct matters
It applies to “specified stablecoins”—cryptographically secured tokens maintaining stable value relative to official currencies or other HKMA-designated units of account or stores of economic value. To date, HKMA has not designated such units, though commodities like gold may be included in the future.
Joshua outlines the longer-term implications of these U.S. and Hong Kong measures, noting how the two regulatory regimes may shape not just local markets but also global digital finance. See less -
