Stablecoin Wars Heat Up Ahead of Trump Administration’s Legislation

The battle for stablecoin dominance is picking up again as Tether accuses competitors of lobbying to kill USDT, and Europe’s MiCA regulations have forced Binance EU to abandon USDT, forcing further market share towards USDC.
As a result, USDC growth has outpaced USDT since the US election.
While USDT is still the dominant stablecoin in terms of market capitalization, with a $143 billion valuation compared to USDC’s $57 billion, USDC has been outperforming USDT in terms of market capitalization growth since post-US election.
The gap between the two noticeably grew on Nov. 6, just one day after Donald Trump was declared the next U.S. President, and USDC has grown 66%, compared to USDT’s 18% since Election Day.

Further headwinds for USDT came out of Europe on March 3 as Binance EU announced it will be forced to remove assets that do not comply with Europe’s MiCA (Markets in Crypto-Assets Regulation) standards, notably USDT.
Consequently, Binance encouraged its users to convert any non-MiCA compliant stablecoins such as USDT, to USDC, EUR, or EURI.
The enforcement came just a few weeks after Paolo Ardoino, the CEO of USDT issuer Tether, pointed the finger at “attacks” on Tether, leveraging lawfare related to the new United States administration to kill Tether.
The conversation began as venture capitalist Vance Spencer posted on X, “The soon-to-be revealed stablecoin markup apparently has requirements to shut off access to the Treasury market to centralized international stablecoin issuers…We should not allow the largest players in crypto to dictate terms that favor themselves at the expense of U.S. national interest and the broader industry.”
While no specific names have been mentioned, USDC issuer Circle is compliant with US regulators as it prepares for an initial public offering (IPO) on the New York Stock Exchange.
It appears that there may not be smoke without fire, as U.S. President Donald Trump announced at the White House’s first crypto summit on March 7 that his administration will be pushing for stablecoin legislation prior to the government’s August recess.
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