Stablecoin Market Escaping US Regulatory Control: Chainalysis
The United States government may be losing regulatory control over the stablecoin market, according to a new report by blockchain research firm Chinalysis.
Stablecoin activity through unlicensed entities in the United States has been on the rise, Chinalysis noted in its latest North American Crypto Report released on October 23.
According to Chinalysis findings, as of spring 2023, the majority of stablecoin revenue for the 50 largest cryptocurrency services has shifted from US-licensed services to non-US-licensed services.
In the year As of June 2023, 55% of stablecoins entering the top 50 services went to exchanges that did not have a US license, the report said.
The research suggests that the US government is increasingly losing its ability to regulate the statecoin market, while US consumers are losing opportunities to engage with the stablecoins they control.
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“While US entities initially helped legalize and seed the stablecoin market, more crypto users are tracking tradecoin-related activity on exchanges and with issuers headquartered overseas,” Chainalysis wrote. While Congress is still considering related bills such as the Transparency of Payments Stablecoins Act and the Responsible Financial Innovation Act, US lawmakers have yet to pass Strycoin regulations, the organization said.
Despite a drop in stablecoin activity authorized in the United States, North America has emerged as the largest cryptocurrency market, with approximately $1.2 trillion received between July 2022 and June 2023, beating the annual transaction volume of 24.4%. According to Chinalysis, the regions of Central, Northern and Western Europe received an estimated USD 1 trillion.
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