Stablecoin Central in the Eye of the Storm: By 2025, the Crypto World Will Have Been Redefined by Regulation and Sanctions

Jan. 12, 2026 — As we kick off 2026, the crypto sector’s key theme is clear: 2025 wasn’t a year of speculation, but one where regulation, infrastructure, and real-world use cases fully took hold. Matthias Bauer-Langgartner, European Policy Manager at Chainalysis, noted stablecoins are the core of this shift. While Bitcoin still makes up roughly half of total market capitalization, stablecoins accounted for over 50% of global on-chain transaction volume last year—deeply integrated into payments, remittances, and trading systems, and now front and center in regulation and compliance. “2025 was the year of stablecoins,” he said plainly. Stablecoins’ strong liquidity and price stability drive widespread legitimate use, but they’re also exploited by illicit actors. Centralized issuers can freeze and seize assets, however, positioning stablecoins as a key tool for regulators targeting financial crime. Chainalysis data shows 2025 illicit crypto flows hit $154 billion, a 162% year-over-year jump. Growth was sharp in state-sponsored illicit activity and sanctions evasion, though such actions still made up less than 1% of total crypto transaction volume. Analysts say as frameworks like MiCA enter the enforcement phase, stablecoins are emerging as a critical node linking the crypto market, geopolitics, and financial regulation—and may continue to shape 2026’s central narrative.