Recent reports from TRM Labs and Chainalysis highlight that the majority of stablecoin operations are legal, challenging common misconceptions of their use in illicit finance.
Stablecoins Confirm Their Legality
According to TRM Labs and Chainalysis, 99% of stablecoin operations in 2024 were legal. These assets challenge the view that they are primary tools for illicit finance. Despite this perception, experts confirm the overwhelming prevalence of legitimate transactions.
Increasing Trust in Stablecoins Among Institutional Investors
The perception of stablecoins as illicit tools is changing, resulting in an increase in trust from institutional investors. This trust is growing due to transparency measures and active interaction with regulatory bodies. The GENIUS Act introduces mandates for licensing and transparency, which reinforces trust in the stablecoin ecosystem.
Shift in Bitcoin's Dominance in Illicit Finance
Previously, Bitcoin dominated illicit transactions, but TRM Labs' new findings suggest the rise of stablecoins in such uses is more due to ubiquity than inherent risk. This underscores the need for more robust regulatory oversight that could lead to deeper integration of the financial industry.
The reports indicate that a proper understanding of stablecoins' role in the financial ecosystem is necessary for shaping a more positive image of this category of assets. With their legitimate use and trust formation in institutions, further progress in blockchain can be anticipated.
