Kaal Dhairya, a Shiba Inu top developer, reveals the reason behind the delayed launch of the ecosystem’s dollar-pegged SHI stablecoin.
The broader Shiba Inu community has been anticipating the launch of SHI, an algorithmic stablecoin for the SHIB ecosystem.
Reason Behind Shiba Inu SHI Stablecoin Launch Delay
Recall that in 2021, the Shiba Inu ecosystem team announced plans to expand its ecosystem by releasing new projects like SHI stablecoin, a collectible card game (CCG), and a reward token.
Four years later, the team has kept its word by launching the CCG (Shiba Eternity) and the ecosystem reward token–TREAT. However, it has not launched the highly anticipated SHI stablecoin, which was initially scheduled for a 2022 release.
Since then, the team has provided limited updates about the SHI stablecoin launch. As a result, community members are questioning the rationale behind the delay.
Addressing this inquiry, Dhairya disclosed that the team is waiting on clear stablecoin regulations before advancing the SHI project. This indicates that the Shiba Inu ecosystem team could launch SHI with clear regulations for stablecoins.
Waiting on clear stable coin regulations
— Kaal (@kaaldhairya) April 9, 2025
US Close to Establishing Stablecoin Regulations
Interestingly, the United States is close to welcoming a comprehensive regulation for dollar-pegged stablecoins. Two similar stablecoin regulations have made progress in the U.S. Senate and House of Representatives with bipartisan support. The GENIUS and STABLE bills aim to provide much-needed regulation for dollar-pegged stablecoins at the federal level.
While the Senate Banking Committee approved the GENIUS Act with an 18-6 vote, the House Financial Services Committee passed the STABLE bill by 32-17. At the moment, the GENIUS and STABLE bills await decisions from the full Senate and House chambers.
Upon passage, the lawmakers merge both bills before sending them to the U.S. president for signature. President Donald Trump is expected to sign the regulation into law, as he has been a major advocate of dollar-pegged stablecoins.
In his view, stablecoins have the potential to strengthen the U.S. dollar and also boost its global dominance. Meanwhile, the U.S. SEC recently declared that most stablecoins are not securities. Hence, they do not fall under the regulatory purview of the Securities and Exchange Commission.
SHI’s Potential Launch
Amid these regulatory efforts, Shiba Inu’s ecosystem team would only advance the SHI project once the U.S. establishes precise stablecoin regulation.
For context, SHI is an algorithmic stablecoin pegged to the U.S. dollar at $0.01 per token. As of last year, Shiba Inu’s top marketer, Lucie, disclosed that the team had not established a mechanism to maintain SHI’s $0.01 peg.
While there is no launch date for SHI, the stablecoin has undergone intensive testing to ensure that it does not suffer a similar fate as other failed algorithmic stablecoin projects, including Terra’s UST.
