Singapore proposes stablecoin regulations banning yield payments and recognizing foreign issuers
The Monetary Authority of Singapore (MAS) issued a public consultation on September 1, 2026, proposing amendments to its stablecoin regulatory framework. Key proposals include banning stablecoin issuers from paying yield to investors, requiring 100% reserve assets held separately, and expanding recognition to foreign-issued and multi-jurisdictional stablecoins. The consultation seeks feedback on reserve asset management and redemption rights, closing October 16, 2026, as part of Singapore’s broader digital asset regulation efforts.
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Singapore Proposes Ban on Stablecoin Yield Payments to Investors
Singapore's financial regulator, the Monetary Authority of Singapore (MAS), has proposed regulatory changes to ban stablecoins from paying yield to investors. The proposed amendments to the Payment Services Act would require stablecoin issuers to maintain assets equal to at least 100% of all tokens in circulation, held in separate accounts from issuers' own funds. The regulator stated that stablecoins should be used for payments, not as investment products or to generate yield similar to bank savings accounts. The ban would prohibit issuers from paying interest or other benefits tied to customers' stablecoin holdings. Singapore's approach aligns with other jurisdictions, including the U.S. GENIUS Act and the European Union's Markets in Crypto-Assets (MiCA) regulation, which also ban stablecoins from paying interest or yield. Banks such as JPMorgan Chase have lobbied against stablecoin yields, arguing they would compete with retail banking. The consultation period closes on October 16, 2026, with no implementation date set yet. Major stablecoins affected include Tether's USDT and Circle's USDC.
Singapore Proposes Ban on Stablecoin Yield Payments to Investors
Singapore's financial regulator, the Monetary Authority of Singapore (MAS), has proposed regulatory changes to ban stablecoins from paying yield to investors. The proposed amendments to the Payment Services Act would require stablecoin issuers to maintain assets equal to at least 100% of all tokens in circulation, held in separate accounts from the issuers' own funds. The regulator stated in a consultation paper that stablecoins should be used for payments, not as investment products or to generate yield similar to bank savings account interest. The new rules would completely prohibit stablecoin issuers from paying interest or other benefits tied to customers' stablecoin holdings. This approach aligns with other jurisdictions, including the U.S. GENIUS Act and the European Union's Markets in Crypto-Assets (MiCA) regulation, which also ban stablecoins from paying interest or yield. Banks such as JPMorgan Chase have lobbied against allowing stablecoins to provide yield, arguing it would compete with retail banking businesses. The consultation period closes on October 16, 2026, with no implementation date set yet. The world's two main stablecoins are Tether's USDT and Circle Internet Group's USDC.
Singapore opens new stablecoin regime for public consultation
Singapore has opened a new version of its proposed stablecoin regulatory regime to public consultation, marking another step in the city-state's efforts to build infrastructure around the rapidly expanding digital asset class. The Monetary Authority of Singapore (MAS) is seeking public feedback on the updated framework, which aims to provide regulatory clarity for stablecoin issuers and foster responsible innovation in the digital payment token ecosystem. This move positions Singapore as a proactive player in the global race to establish clear rules for stablecoins, which are cryptocurrencies designed to maintain a stable value relative to a reference asset, such as a fiat currency. The consultation process invites stakeholders to comment on proposed requirements related to reserve asset management, redemption rights, and disclosure standards. The initiative reflects Singapore's broader strategy to become a leading hub for digital asset innovation while ensuring financial stability and consumer protection.
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MAS proposes changes to Singapore's stablecoin regulations, recognizing foreign stablecoins
The Monetary Authority of Singapore (MAS) has proposed amendments to its stablecoin regulatory framework, originally implemented in 2023, to recognize multi-jurisdictional and foreign-issued stablecoins. On September 1, 2026, MAS published a consultation paper seeking feedback on the proposed changes to Singapore's payments legislation. The amendments would expand the scope of regulated stablecoins beyond those issued solely in Singapore. Additionally, MAS is seeking input on how issuers could use returns earned on pools of backing assets. This move signals Singapore's intent to integrate foreign stablecoin issuers into its regulatory perimeter while maintaining oversight of reserve asset management. The consultation aims to update the framework to address cross-border stablecoin activities and ensure financial stability.
MAS proposes changes to Singapore’s stablecoin regulations, recognizing foreign stablecoins
The Monetary Authority of Singapore (MAS) has proposed amendments to its payments legislation to regulate multi-jurisdictional and foreign-issued stablecoins. On September 1, MAS published a consultation paper seeking feedback on how issuers could use returns earned on pools of backing assets. The proposed changes would update the stablecoin regulatory framework implemented in 2023, expanding recognition to include stablecoins issued in multiple jurisdictions or by foreign entities. This move aims to adapt Singapore's regulatory environment to the evolving global stablecoin landscape.
MAS seeks feedback on proposals regulating value and user protection for stablecoins
The Monetary Authority of Singapore (MAS) has issued a public consultation seeking feedback on proposed regulations for stablecoins, focusing on value stability and user protection. The proposals aim to establish a regulatory framework for stablecoin issuers in Singapore, covering requirements for reserve assets, redemption rights, and disclosure. Interested parties, including industry stakeholders and the public, are invited to submit their feedback by October 16, 2026. The move is part of Singapore's broader efforts to regulate digital payment tokens and ensure financial stability while fostering innovation in the crypto asset sector. The article, published by The Business Times on September 1, 2026, and written by Chloe Lim, highlights the MAS's proactive approach to addressing risks associated with stablecoins, which are digital assets pegged to fiat currencies or other assets. The consultation document is expected to detail specific measures to safeguard users and maintain the integrity of the payment system.