Tether Remains Largest Stablecoin Amid Rising Competition
The GENIUS Act has established a regulatory framework for stablecoins, attracting attention from both traditional and crypto firms. The stablecoin market expanded from $120 billion in October 2023 to $288 billion in August 2024, with Tether's USDT maintaining its status as the leading stablecoin.
Tether’s Regulatory Challenges and Rising Rivals
- Tether holds nearly 60% of the stablecoin market despite facing controversies.
- In 2021, Tether was fined $41 million by the CFTC for misleading claims about its reserves.
- Current reporting practices do not meet GENIUS Act requirements for monthly disclosures.
- Competitors like USD Coin (USDC), with a market cap of approximately $68 billion, are gaining traction.
- Circle, the issuer of USDC, has maintained consistent monthly attestations since 2018.
- EU regulations require stablecoin issuers to obtain approval and meet strict reserve standards.
- Circle has complied with these regulations, while Tether has withdrawn from the European market.
A New Contender with Ties to XRP
- Dai, rebranded as USDS, is managed by Sky and focuses on decentralization through crypto-backed loans.
- Ripple USD (RUSD) has a market cap of around $667 million and is linked to XRP for cross-border transactions.
- RUSD has received regulatory approval from the New York State Department of Financial Services.
Despite emerging competitors, Tether's current market dominance suggests it will remain a key player in the stablecoin sector.
