Tether's share of the stablecoin market exceeds 51% for the first time since May 2022
The largest U.S. dollar-linked cryptocurrency by capitalization is growing in popularity, despite increased attention from U.S. regulators on this digital asset category
Tether (USDT)'s share of the Stablecoin market exceeded 51% for the first time since May 2022. It reached 51.07% this past weekend, February 11-12, and was 51.31% by February 13, according to CoinGecko. USD Coin (USDC) is in second place with 30.64% of the market, while Binance USD (BUSD) accounts for 12.09%.
By contrast, Circle's USDC Stablecoin's capitalization has fallen by more than $3.3 billion since the start of the year, with $40.9 billion worth of tokens now in circulation, down 8.2% since January 1 of this year.
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Stablecoin BUSD, issued by Paxos, is in third place with a market capitalization of $16.1 billion. At the beginning of the year, the figure was $16.5 billion, down 2.4%.
The attention of the cryptocurrency community is now focused on the fate of Binance's stablecoin. Its issuer, Paxos, announced that it had stopped issuing the token at the request of U.S. authorities. Changpeng Zhao, the exchange's CEO, acknowledged that BUSD's capitalization and popularity will fall.
But that's not all the problems the BUSD token has suffered. It has also come to light that the U.S. Securities and Exchange Commission (SEC) has informed Paxos that it intends to sue it for violating investor protection laws. The SEC alleges that BUSD Stablecoin is an unregistered security.
Zhao said if the court rules that Binance's Stablecoin is a security, it would have a "profound impact on the development of the crypto industry in the jurisdictions where it would be regulated in this way."
He said he agrees that Stablecoin does not meet the criteria of the Howey test, which determines how an asset is treated as a security.
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