The US has seen a slowdown in stablecoin adoption in 2024 compared to global markets, as reported by Chainalysis. While Bitcoin activity surged following the launch of spot BTC ETFs, the share of stablecoin transactions on US-regulated exchanges dropped from roughly 50% in 2023 to below 40% in 2024. Conversely, non-US regulated platforms have seen stablecoin transactions exceed 60%. This shift reflects a broader trend where global demand for US dollar-backed assets is increasing, particularly in regions with unstable currencies. More than $1 trillion in US dollar banknotes were estimated to be held outside the US as of late 2022. Furthermore, regulatory uncertainty in the US regarding stablecoins is driving projects to relocate to more favorable environments abroad, posing threats to US leadership in the stablecoin market. Policymakers face mounting pressure to establish a regulatory framework facilitating stablecoin adoption amid these advancements in other countries.

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