Regulatory Advantages Drive USDC Ahead of Tether in Stablecoin Expansion

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Regulatory Advantages Drive USDC Ahead of Tether in Stablecoin Expansion

Bitget-RWA2025/10/30 09:10

By:Bitget-RWA

- USD stablecoin market cap hit $303.5B in 2024, doubling since January as demand grows for dollar-backed digital assets amid regulatory shifts. - USDC (Circle) outpaced Tether's USDT by 59% growth post-US election, driven by Trump's GENIUS Act favoring domestic stablecoin issuers. - Tether plans US subsidiary under ex-Trump adviser to align with regulations, while Circle gains compliance edge under stricter US oversight. - USDC's market cap surged from $48B to $76B since Trump's inauguration, reflecting r

The total value of USD-pegged stablecoins has climbed to $303.5 billion, representing a 50% rise since the beginning of 2024. This growth is fueled by strong interest in dollar-linked digital currencies amid shifting global politics and changing regulatory landscapes, according to

LookonChain data

. Tether's

USDT

and Circle's

USDC

continue to lead the market, with USDT valued at $188.4 billion and USDC at $76.3 billion. Notably, USDC has grown faster than USDT in recent months, expanding by 59% since the U.S. presidential election, while USDT increased by 32.5%, according to a

Benzinga report

This difference in growth rates is attributed to the Trump-endorsed GENIUS Act, which favors U.S.-regulated stablecoin providers like

Circle

over offshore entities such as

Tether

. The policy, introduced under the current administration, has enhanced Circle's regulatory standing, as USDC operates under more stringent U.S. oversight. This compliance advantage has enabled Circle to secure a greater portion of market liquidity, with Protos data indicating USDC's market cap has grown from $48 billion to $76 billion since Trump took office, as cited by Benzinga. Meanwhile, Tether, which is headquartered in El Salvador, has revealed plans to launch a U.S. branch led by former

Trump

adviser Bo Hines, reflecting a move to align with U.S. regulations.

Regulatory Advantages Drive USDC Ahead of Tether in Stablecoin Expansion image 0

Circle's shares (CRCL) experienced short-term fluctuations, dropping 2% to $133 on Wednesday, but market experts remain optimistic about its future. The company's collaboration with Coinbase Global (NASDAQ: COIN) further solidifies its market position, as both benefit from clearer regulations and increased USDC usage. Technical analysis indicates that

CRCL

may break out of its downward trend if it surpasses $140, with potential targets at the 200-day EMA of $154.80 and a projected level of $298, according to Benzinga.

The GENIUS Act's impact reaches beyond stablecoins, altering the competitive dynamics between U.S.-based and offshore digital asset companies. By giving domestic issuers a regulatory advantage, the policy supports Trump's broader pro-crypto stance, which also includes the recent approval of U.S.-listed

Bitcoin

ETFs. This development highlights the administration's focus on creating a regulatory climate that encourages innovation while reducing risks from unregulated foreign operations.

With the stablecoin sector continuing to grow, the relationship between regulatory decisions and market forces will likely shape its future direction. Currently, the 50% jump in USD stablecoin market value points to a rapidly evolving industry, with U.S. regulations playing a crucial role in its development.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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