U.S more interested in Bitcoin than Stablecoin

The US has seen record levels of Bitcoin activity since spot BTC exchange-traded funds (ETFs) were introduced. However, according to a Chainalysis report released on October 17, stablecoin usage in the US has slowed in 2024 compared to global markets.

Stablecoin activity on US marketplaces has significantly decreased this year; in 2024, less than 40% of stablecoin transactions on US-regulated exchanges, compared to nearly 50% in 2023.

In contrast, the percentage of stablecoin transactions on platforms not governed by US law has grown since 2023 and surpassed 60% in 2024, per Chainalysis’ most current examination of cryptocurrency adoption trends in North America.

Chainalysis underlined that the change does not necessarily signify a steep drop in US stablecoin activity but rather the fast-growing significance of stablecoins in non-US countries and emerging markets.

The increasing popularity of stablecoins outside the US reflects a larger trend: stablecoins backed by the US dollar are becoming very popular in international markets as a store of value and less expensive adopting stablecoins is the regulatory ambiguity surrounding them and digital assets.

According to Chainalysis, Circle, a top stablecoin firm has seen that financial centers in Europe and the United Arab Emirates have been able to draw stablecoin projects with more hospitable legal frameworks because of the US’s unclear crypto laws.

A Circle representative cautioned that “the lack of a US regulatory framework for dollar-referenced stablecoins represents a threat to American interests.”
US politicians are facing mounting pressure to take action as more nations create regulatory frameworks that promote the adoption of stablecoins.