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Parliamentarians have raised concerns about the potential impact of the GENIUS Act on the city-state’s competitiveness as a global hub for regulated crypto-assets, as well as the risks such assets pose for consumers.
The Guiding and Establishing National Innovation for US Stablecoins Act was signed into law by President Donald Trump in July 2025. The Act establishes a bipartisan legislative framework for regulating payment-focused stablecoins in the US.
The US’ pro-stablecoin regime is already sparking concern overseas, particularly in jurisdictions that had already established legal frameworks.
In a parliamentary sitting on September 24, 2025, Singaporean lawmaker Victor Lye asked the Ministry of Finance to assess the GENIUS Act’s implications for Singapore’s crypto-asset sector. He also asked whether the Monetary Authority of Singapore (MAS) intended to seek US recognition of Singapore’s regulatory framework for stablecoins as a comparable regime under the GENIUS Act.
In response, deputy prime minister and minister for trade and industry, Gan Kim Yong, who also chairs MAS, said that although the GENIUS Act aims to provide regulatory clarity for stablecoins in the US, it is still too early to determine its global impact.
He noted that stablecoin adoption could bring efficiency gains and lower transaction costs but emphasised the potential risks if stablecoins are not properly regulated, including rapid redemptions and loss of confidence in their value.
Gan also confirmed that legislative amendments are underway to formalise the framework, with a public consultation expected later this year.
“MAS is also playing a key role in collaborations among global financial institutions and international policymakers,” the regulator said.
“The aim is to develop standards around tokenised assets and the supporting infrastructure to facilitate cross border interoperability across digital asset networks and instruments, including stablecoins, tokenised bank liabilities.”
Consumer protection concerns
Singapore’s lawmakers have also raised concerns about consumer protection following the collapse of Tokenize Xchange, a cryptocurrency exchange based in Singapore that ceased operations in July 2025.
MP Chua Kheng Wee Louis asked about the number of Singaporean customers affected, the total funds impacted and what recourse was available.
Gan explained that Amazingtech Pte. Ltd., the operator of Tokenize Xchange, was not licensed by MAS but had been operating under a temporary exemption during the transitional arrangements of the Payment Services Act 2019.
After MAS rejected its licence application, ATPL was not required to wind down its business.
However, it was unable to meet customer obligations and was placed under interim judicial management on August 15, 2025.
In a sign of how messy the situation has become for Singapore, Gan said that appointed interim judicial managers reported that, as of August 15, customers were owed approximately S$266.3m ($205.9m) in cash and digital assets, with 2,241 customers having registered with the managers as of September 9.
“MAS has taken a consistent position advising members of the public that crypto is not suitable for retail investors and to deal only with licensed entities,” the regulator said.
Insight into Singapore’s approach to crypto
A combination of early and robust cryptocurrency legislation, along with its reputation as a financial services hub, has enabled Singapore to achieve significant growth and international recognition in the digital assets space.
It has attracted major crypto firms over the years, including OKX, BitGo and Anchorage.
However, these parliamentary questions highlight ongoing concerns regarding the government’s future approach to the crypto-asset sector.
Singapore continues to demonstrate regulatory vigilance while seeking to maintain its international competitiveness. Questions regarding the GENIUS Act indicate that policymakers are closely monitoring global developments in stablecoin regulation.
Lawmakers are concerned that foreign frameworks could influence Singapore’s attractiveness as a hub for regulated digital assets, Highlighting that the city-state is taking the threat of US dominance in the stablecoin space seriously.
Other Asia-Pacific jurisdictions, such as Hong Kong, have also adapted to the rise of stablecoins by introducing legislative frameworks aimed at attracting crypto-asset firms and investors.
At the same time, consumer protection and risk awareness remain concerns for MAS and parliamentarians alike.
Even crypto and payment firms operating under transitional arrangements with regulators can expose customers to significant financial harm if they lack proper licensing or oversight. Consequently, MAS continues to caution that crypto-assets are highly risky and unsuitable for most consumers.
Ultimately, Singapore’s government appears to be balancing innovation with prudence, supporting digital asset capabilities and programmable stablecoins while mitigating major risks.
The regulatory landscape is still evolving, and Singapore faces the risk that stablecoins and other crypto-assets remain highly dynamic areas where global frameworks continue to develop and adapt.
MAS’s ability to command respect in the crypto space has been tested by the GENIUS Act, and it remains to be seen whether Singapore can retain its reputation as a leading hub for assets such as stablecoins.
