Stablecoin adoption for micropayments is significantly influenced by regulation. Clear regulatory frameworks can foster trust, encouraging businesses and consumers to use stablecoins for small transactions due to their low volatility and cost efficiency. However, stringent or unclear regulations, such as anti-money laundering (AML) and know-your-customer (KYC) requirements, can hinder adoption by increasing compliance costs and complexity for payment platforms. In regions with supportive policies, like the EU’s MiCA framework, stablecoin use in micropayments is growing. Conversely, restrictive regulations in some jurisdictions limit scalability by discouraging innovation or imposing high barriers for issuers and merchants. Regulatory uncertainty also deters mainstream acceptance, as businesses hesitate to integrate stablecoins without stable legal guidelines.