- US stablecoin adoption falls below 40%, driven by regulatory uncertainty and global market shifts.
- Emerging markets lead stablecoin growth, while US platforms struggle with unclear regulations.
- Institutional investors drive $1.3T in North American crypto activity despite stablecoin decline.
The United States is experiencing a noticeable decrease in stablecoin adoption due to the regulatory uncertainty. At the same time, there is increasing interest in US dollar backed stablecoins worldwide, including in Argentina and Turkey. According to Chainalysis, usage of Bitcoin in the US has increased since the launch of spot Bitcoin exchange traded funds.
Shift in Stablecoin Usage
In 2024, stablecoin transactions on platforms based in the US saw a decrease to less than 40%, compared to 50% in the prior year. Meanwhile, platforms from countries other than the United States have experienced their market share surpassing 60%, with developing nations making a significant impact.
However, this change does not mean that the use of stablecoins in the U.S. has decreased substantially. Instead, it shows how stablecoins are gaining traction in other parts outside the US where more favorable regulations fuel their adoption.
Regulatory Impact on Stablecoins
Uncertainty surrounding regulations in the US has greatly hindered the adoption of stablecoins. Different areas like Europe and the United Arab Emirates are drawing in stablecoin initiatives due to their more transparent and encouraging regulatory settings.
Circle, a top issuer of coins, has expressed worries that the lack of clarity in the US regulatory system could jeopardize the nation’s position in the stablecoin market. Lack of clear regulations may cause the US to fall behind global financial centers with more favorable policies.
Crypto Concentration in North America
Despite regulatory hurdles, cryptocurrency activity continues strong in North America. From July 2023 to June 2024, $1.3 trillion in onchain value flowed through the area, making up 22.5% of all cryptocurrency dollars flowing globally.
Over 70% of the crypto transactions in the area are due to institutional investors, which usually involve transfers worth more than $1 million.
Although the US continues to be a major player in the crypto market, changes in crypto usage and regulatory challenges are causing market volatility.
Global Regulatory Developments
With the increasing popularity of stablecoins worldwide, numerous nations are creating structures to promote their use. The increasing establishment of international efforts is highlighting the problem of uncertain regulations in the US.
There is an increasing demand for US policymakers to establish a defined course of action or else they may lag behind other nations in this field.
The post Emerging Markets Overtake US in Stablecoin Transactions Amid Regulatory Gaps appeared first on Crypto News Land.
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