- The USDC stablecoin’s market worth has fallen to $30.69 billion today.
- Circle has recently submitted an application for authorization to operate in France.
On Wednesday, Circle CEO Jeremy Allaire blamed the continued decline in the value of the USD Coin (USDC) stablecoin on the regulatory burden and the efforts of authorities to discredit the cryptocurrency market. Allaire said investors are trying to “de-risk out of the US” because of the ambiguity of US regulations.
The USDC stablecoin’s market worth has fallen to $30.69 billion today, continuing a decline that began around the middle of 2022. Despite USDC’s decline, other stablecoins like Tether (USDT) have had their market caps rise past $81 billion this year as the market as a whole has risen.
On April 26, CEO of Circle Jeremy Allaire remarked in an interview with Bloomberg TV:
“We are seeing a huge amount of concern globally about the US banking system. We are seeing concern about the regulatory environment in the US.”
Uncertain Regulatory Conditions
The bulk of USDC stablecoin reserves come from the United States Treasury and bank deposits. After US authorities shut down three cryptocurrency-friendly banks, the USDC depegged from the US dollar amid the financial crisis. Silvergate Bank, Silicon Valley Bank, and Signature were all targeted.
After the Terra-LUNA issue and the consequences of FTX, regulators have increased their focus on stablecoins. This has resulted in a number of crypto exchanges and organizations situated in the United States leaving the country.
Circle Internet Financial has recently submitted an application for authorization to operate in France. Circle plans to increase its visibility and involvement with authorities throughout the European market now that the EU’s MiCA law has been adopted.
Despite uncertain regulatory conditions, the U.S SEC is scrutinizing crypto firms over securities sales, adding salt to the wound.
