Brazil to tighten backing rules with strengthened regulations on stablecoin oversight

2026-02-13 12:10:30

Abstract generation in progress

The Brazilian government has decided to introduce new legislation, adding algorithmic stablecoins to the list of regulated assets. The core of this reform is to require all stablecoins to be sufficiently backed. To ensure market safety, full collateralization with reserve assets will become a legal requirement.

Full backing becomes the new standard

Under the new regulations, stablecoin issuers must be backed by adequate reserve assets. Traditional algorithmic stablecoins (which maintain their price through automatic adjustment mechanisms) may find it difficult to meet this new backing requirement. Violations will result in strict penalties for issuers, increasing the importance of compliance.

Direct impact on the market, including Ethena USDe

This regulation will directly affect popular algorithmic stablecoins like Ethena’s USDe. Distribution and issuance within the Brazilian market are likely to be restricted, forcing projects to reevaluate their market strategies. Other algorithmic stablecoins are also expected to face similar challenges.

Strengthening financial stability as the background

The backdrop for this legislation is to enhance the stability of the financial system. Stablecoins lacking sufficient backing pose systemic risks during market fluctuations, and regulators aim to eliminate such risks in advance. According to NS3.AI’s analysis, this move is also part of a global trend toward stricter stablecoin regulation.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.