Stablecoins face significant legal risks that could hinder their global adoption. Regulatory uncertainty across jurisdictions creates challenges, as governments grapple with classifying stablecoins as currencies, securities, or commodities. Anti-money laundering (AML) and know-your-customer (KYC) compliance requirements impose operational burdens, particularly for decentralized platforms. Tax implications for users and issuers remain unclear, deterring widespread use. Additionally, concerns over consumer protection, financial stability, and potential systemic risks from large-scale stablecoin failures prompt stricter oversight. For instance, the EU’s MiCA framework and U.S. proposals signal tightening regulations. Cross-border transactions face further hurdles due to varying legal standards, limiting seamless global integration. While technological advantages and demand for stable digital currencies drive adoption