According to a recent report by the blockchain research firm Chainalysis, it appears that the United States government’s regulatory oversight of the stablecoin market is waning. Chainalysis has highlighted in its latest North American cryptocurrency report, released on October 23, that there has been a notable increase in stablecoin activity taking place through entities that lack licensure within the United States.
The findings from Chainalysis indicate that a significant portion of the stablecoin inflows to the top 50 cryptocurrency services have shifted away from U.S.-licensed platforms to those operating outside the United States since the spring of 2023.
As of June 2023, approximately 55% of the stablecoin inflows to these top 50 services were directed toward non-U.S.-licensed exchanges, as outlined in the report. This study implies that the U.S. government’s capacity to supervise the stablecoin market has been progressively diminishing, while American consumers have been missing opportunities to engage with regulated stablecoins.
Chainalysis pointed out that, despite U.S. entities playing a role in legitimizing and nurturing the stablecoin market initially, an increasing number of cryptocurrency users are now engaging in stablecoin-related activities with trading platforms and issuers based overseas.
The research firm also observed that U.S. legislators have not yet enacted regulations specifically governing stablecoins, as Congress continues to deliberate on related bills such as the Clarity for Payment Stablecoins Act and the Responsible Financial Innovation Act.
Despite the decline in licensed stablecoin activity within the United States, North America has become the largest cryptocurrency market. It is estimated that North America received around $1.2 trillion in cryptocurrency transactions between July 2022 and June 2023. During this period, the region accounted for 24.4% of the global transaction volume, surpassing Central, Northern, and Western Europe, which received an estimated $1 trillion, according to Chainalysis.
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