AI Regulation: Governments Play Catch-up As $225bn Stablecoin Opportunity Reshapes Global Markets

Stablecoin market capitalisation reached a whopping $225 billion as of Tuesday, February 11, as per DeFiLlama data, while over one million new AI agents – who increasingly in-game economies, making the gaming sector as dynamic and complex as real-world markets – in 2025.

Sector experts such as Haseeb Qureshi, managing partner at Dragonfly, a crypto fund, predict an explosion in stablecoin usage with real businesses starting using on-chain dollars for instant settlement and announcements on bank-issued stablecoins toward the end of 2025.

“With [Howard] Lutnick as [US]Secretary of Commerce, Tether will remain #1,” Qureshi said in a post on X.

Tether’s USDT is the largest stablecoin, with $141.6 billion in circulation as of February 10.

Uldis Teraudklans, Chief Revenue Officer at Paybis, a leading crypto exchange, said stablecoins are increasingly dominating the industry, international trade, and payments because they are effective.

“They are managed by private organisations, whether for-profit or not-for-profit, and run on platforms like Ethereum, Tron, Polygon, and Solana.

“These platforms are backed by specific companies with CEOs who have decision-making power,” Teraudklans told Arabian Business.

AI to play a dominant role in Web3 gaming

Ilman Shazhaev, Founder of Dizzaract Game Studio, which launched the Dubai Program for Gaming 2023, said he expects that AI will play a dominant role in Web3 gaming development in 2025, particularly their role in managing in-game economies where prices, resources, and events are adjusted based on player behaviour and market trends.

He also anticipated the integration of digital ownership and AI as a catalyst for the creation of entirely new markets for game assets and experiences, much like the rise of internet companies in the late 1990s.

“In Web3 games, AI agents can manage in-game economies, providing real-time insights and keeping systems dynamic and responsive.

“By 2025, digital ownership will no longer be optional – it will be a core expectation. Players will own their in-game assets and identities, transferring achievements seamlessly across games while participating in economies that mirror real-world markets,” Shazhaev told Arabian Business.

He also cited the examples of Epic Games’ CEO already envisioning connecting Fortnite, Minecraft, and Roblox into a unified metaverse, where digital assets can move freely across platforms, and Unreal Engine offering the most suitable platform for mass adoption as millions of players engage daily, as pointers of this move.

“In-game economies, powered by AI, will be as dynamic and complex as real-world markets.

“The convergence of AI and Web3 will also open entirely new markets for assets, experiences, and even professions within gaming,” he said.

Relaxations in regulations could trigger a new technological race

Sector experts said the surge in usage of AI tools and digital currencies, such as stablecoins, comes at a time when powerful economic blocs are relaxing regulations for the sectors, which could trigger a new technological race.

The European Union is reportedly moving towards a more relaxed AI regulatory approach to remain competitive, following US President Donald Trump’s removal of previous safeguards for the sector.

In a recent press conference, David Sacks, White House AI and crypto czar, opined that stablecoins could help ensure the global dominance of the US dollar, increasing its digital usage as the world’s reserve currency.

This shift is seen as significant as it could potentially create trillions in demand for US Treasuries, helping to lower long-term interest rates.

The Paybis senior executive, however, said he did not expect major developments in crypto adoption to come from traditional Western markets like Europe, the UK, and the US, as well as larger markets such as Japan and Australia.

“Their incumbent financial systems and bureaucratic governments make rapid progress in these regions unlikely,” he said.

Teraudklans said countries that are more opportunistic, such as El Salvador – where Bitcoin has been adopted as official payment and legal tender – are likely to see faster development.

“Similarly, countries like China, with limited financial freedoms, would be a logical environment for such innovations.

“Thus, the first experiments could come from there,” he said.

Looking at the trends in Europe, Teraudklans said the European Union is advancing toward standardisation with its MiCA (Markets in Crypto-Assets) regulation.

“However, there is no global consensus on how stablecoins should be implemented or which infrastructure should be used.

“As a result, the global adoption of a financial system based on central bank digital currencies is unlikely in the near future,” he said.