What are stablecoin regulations?

Could you elaborate on what regulations exist for stablecoins? How are they monitored and enforced to ensure compliance? Are there any specific laws or guidelines that govern the issuance and trading of these digital assets? Additionally, how do regulators balance the need for innovation in the crypto space with the protection of investors and the stability of the financial system? Understanding these aspects would provide valuable insights into the current state of stablecoin regulations.