According to TRM Labs, stablecoins constitute over 60% of all crypto transactions. This figure has increased from 35% over the past two years, reflecting the growing popularity of fiat-backed digital currencies.
Rising Popularity of Stablecoins
Stablecoins, such as USDC and USDT, are becoming increasingly popular due to their speed, stability, and suitability for trading and transferring money. In early 2025, stablecoins accounted for 28% of all crypto activity and consistently represent over 4% of the total cryptocurrency market cap. Their usage has notably risen in emerging markets, including Latin America, Southeast Asia, and sub-Saharan Africa, where they are viewed as a safe alternative to unstable local currencies.
Issues with Criminal Use
Despite 99% of stablecoin use being legal, TRM Labs reports that in Q1 2025, they were involved in 60% of illicit crypto transactions. This is attributed to their high liquidity and broad acceptance, making them attractive for money laundering, scams, and terrorist financing.
Regulation and Future of Stablecoins
In light of rising concerns about the criminal use of stablecoins, the U.S. Senate has passed the GENIUS Act. This bill establishes federal rules, enhances compliance, and aims to protect both users and markets. It is now headed to the House for final approval. Industry voices, such as Veronica McGregor from Exodus, regard this as a "momentous step" that could unlock new opportunities for stablecoins globally.
Stablecoins play a significant role in modern financial systems, but the need for regulation is becoming increasingly pressing. The anticipated changes associated with the GENIUS Act could significantly impact their future and ensure compliance with necessary standards.
