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(USDT) achieved a record market capitalization of $86.12 billion on Wednesday, November 8, 2023, amidst intensifying regulatory discussions at D.C. Fintech Week. The surge in USDT’s value comes after an impressive rebound since June 2023, following a market cap reduction in late Q4, 2022.
The rise of stablecoins like USDT, Circle’s USDC, and MakerDAO’s Dai (DAI) in the crypto ecosystem has prompted increased scrutiny from regulators. Michael Barr of the Federal Reserve called for stronger regulation, citing concerns about the proliferation of unregulated private money backed by the US dollar and potential financial stability risks. These sentiments were echoed by Wyoming Senator Cynthia Lummis, who urged for crypto regulations to be passed early next year.
USDT’s dominance over competitors like USDC and DAI is notable. While USDC peaked in Q2, 2022, its market cap fell to $24 billion by Q3, 2023 — a drop of nearly 56.3%. DAI currently has a supply of $5.34 billion.
Backed primarily by U.S. T-bills with holdings of $72.6 billion, USDT’s market cap surpasses the U.S. debt held by countries like the Netherlands and UAE. In addition to its stablecoin operations, Tether has also ventured into mining software. The company’s CEO Paolo Ardoino introduced Moria, a new-gen Bitcoin mining orchestration tool, in mid-October 2023.
While stablecoins are gaining prominence, Bitcoin (BTC) is also experiencing significant growth.
As digital currencies continue to gain traction, the calls for regulatory oversight are likely to intensify further. The proposed regulations are expected to provide more clarity and stability in the rapidly evolving crypto market.
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