Crypto Executives Confident in Stablecoin Regulations
Crypto industry executives are optimistic that stablecoin regulations will be implemented in the United States this year. The recent approval of spot crypto exchange-traded funds has potentially shifted the regulatory outlook to a less adversarial stance. Circle CEO Jeremy Allaire believes there is a high chance of stablecoin regulations being passed in 2024, citing the desire for consumer protections and US leadership. The Clarity for Payment Stablecoins Act, which aims to regulate stablecoins under traditional finance frameworks, has been passed by the House Financial Services Committee but awaits approval from the House of Representatives.
Tether Dominates Market Share as Circle Loses Ground
While Circle’s USDC stablecoin has seen a decline of 42% in market share over the past year, Tether continues to grow. Tether’s supply reached a record 95 billion USDT on January 16, giving it a dominant 73% market share. In response to the US crypto crackdown in 2023, Circle has been expanding overseas.
TrueUSD Deppegged from One-Dollar Peg
TrueUSD, a stablecoin linked to Justin Sun, depegged from its one-dollar peg on January 15, falling to $0.984. An unusually large amount of selling on Binance, totaling around $333 million, contributed to the depeg. Additionally, Binance has switched to First Digital USD (FDUSD) for its latest Launchpad offering. TrueUSD is currently the fifth largest stablecoin with a circulation of $1.9 billion and a market share of 1.4%.
Hot Take: Stablecoin Regulations Expected in the US
The crypto industry is anticipating the implementation of stablecoin regulations in the United States this year. Circle CEO Jeremy Allaire is confident that regulations will be passed, citing the desire for consumer protections and US leadership. Despite losing market share, Tether remains the dominant stablecoin with a record supply of 95 billion USDT. Meanwhile, TrueUSD has depegged from its one-dollar peg, falling to $0.984. As the regulatory landscape evolves, the crypto industry continues to adapt and navigate these changes.
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