Israel is taking decisive action towards regulating stablecoins, with the aim of achieving regulatory clarity by 2025 and a more robust digital shekel in the coming years. The push for stricter rules comes primarily due to the dominance of Tether and Circle, key players controlling a majority of global stablecoin activity. Yoav Soffer, leading the Israeli project on a digital shekel framework, has outlined a roadmap through 2026. Governor Amir Yaron emphasized that these new regulations will address Tether (USDT) and Circle (USDC), which hold significant market share within this space. This includes mandating 1:1 backing and liquid asset management for stablecoins.