Regulatory challenges for stablecoins arise from their potential impact on financial stability and consumer protection. These digital currencies, aiming to maintain a stable value, must adhere to stringent regulations to safeguard against systemic risks. One challenge is determining the regulatory framework, as stablecoins operate across borders and blur traditional legal boundaries. Collaborative efforts among jurisdictions are crucial to effectively regulate this emerging sector. Additionally, concerns about money laundering, terrorism financing, and data privacy require robust measures to be in place. Strict oversight is necessary to ensure that stablecoin issuers comply with anti-money laundering and know-your-customer regulations. Balancing innovation and regulatory safeguards is the key to harnessing the benefits of stablecoins while mitigating potential risks.