- Chainalysis study suggested the U.S. is losing grip on $124.5 billion stablecoin market.
- Stablecoin inflows to 50 crypto services moved from U.S. entities to non-U.S.licensed platforms.
- North America leads in crypto despite declining licensed stablecoin transactions.
Prominent blockchain research firm Chainalysis has disclosed that the United States government is potentially losing its regulatory grip over the $124.5 billion stablecoin market.
Chainalysis made the claim in a study published on Monday, October 23. The report was part of the research firm’s latest findings on the Global Crypto Adoption Index, highlighting a significant shift in the landscape of stablecoin activity.
According to the report, a growing portion of stablecoin activity now occurs through exchanges not licensed by the United States. Chainalysis found that stablecoin inflows to the 50 most prominent crypto services migrated from U.S.-licensed platforms to non-U.S.-approved businesses since the spring of 2023.
Specifically, the report highlighted that as of June 2023, 54.6% of stablecoin transactions to the top trading platforms were directed to exchanges outside U.S. regulatory oversight.
Chainalysis underscored the significance of the shifting landscape, given that over 90% of stablecoin activity occurred with U.S. dollar-pegged coins. According to the research firm, U.S. regulators “have a strong interest in exercising some regulatory authority over stablecoins, given the central role of USD-denominated reserves to the assets.”
Besides, Chainalysis noted that U.S. lawmakers have not enacted stablecoin-specific regulations. It mentioned that the U.S. Congress is still considering related bills such as the Clarity for Payment Stablecoins Act and the Responsible Financial Innovation Act.
Meanwhile, Chainalysis ranked North America as the largest crypto market despite declining licensed stablecoin activity. The report noted that the region attracted $1.2 trillion in transactions between July 2022 and June 2023. The figure accounted for 24.4% of the global transaction volume.
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