Circle Internet Financial Aids USD Coin Recovery After $13 Billion Drop
Key Points:
- The market value of stablecoin USD Coin has decreased due to US banking and regulatory challenges.
- Circle Internet Financial Ltd. has pledged to cover any shortfall, aiding USDC in recovering its value.
- The US is lagging behind in crypto rules compared to the EU, Hong Kong, Singapore, and the Middle East.
US banking and regulatory issues cause USD Coin to lose market value. However, Circle Internet Financial Ltd. pledges to cover any shortfall, aiding USDC in recovering.
As per Bloomberg, Investors are moving away from the US due to the banking sector and regulatory challenges, resulting in a decrease in the value of stablecoin USD Coin. Circle Internet Financial CEO Jeremy Allaire has expressed his concern about the US banking and regulatory system. USD Coin, which is designed to maintain a constant value of $1, lost its market peg earlier this year but has since stabilized.
However, its total market capitalization has fallen to about $30.7 billion from a peak of over $56 billion in 2022, according to CoinGecko data. Stablecoins, which are commonly used by investors in trading, are often supported by reserves such as cash and bonds, and regulators have raised concerns about the risks they pose.
USD Coin or USDC’s market value has decreased by approximately $13 billion since March when US banking problems emerged. The token temporarily lost its market peg after discovering that $3.3 billion of the reserves supporting the stablecoin were held in the defunct Silicon Valley Bank. In an effort to restore confidence in the US financial system, officials have promised to refund depositors, and Circle has pledged to cover any shortfall, which has aided USDC in recovering its $1 value in cryptocurrency markets.
US crypto firms are struggling under tight regulations and a market downturn. The SEC considers most tokens unregistered securities and accuses many digital asset companies of non-compliance. The industry is calling on Congress to clarify crypto-asset rules, but progress has been slow due to political divisions. Stablecoin regulations, in particular, face uncertain prospects.
Jeremy Allaire, CEO of Circle Internet Financial, has expressed concerns about the competitiveness of the US dollar compared to blockchain technology and internet-based currencies. He said that while the European Union, Hong Kong, Singapore, and the Middle East are progressing on crypto rules, the US is lagging behind. Despite facing transparency issues with its reserves, Tether continues to be the largest token in the stablecoin sector, followed by USD Coin, which is backed by cash and short-dated US Treasuries.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
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Circle Internet Financial Aids USD Coin Recovery After $13 Billion Drop
Key Points:
- The market value of stablecoin USD Coin has decreased due to US banking and regulatory challenges.
- Circle Internet Financial Ltd. has pledged to cover any shortfall, aiding USDC in recovering its value.
- The US is lagging behind in crypto rules compared to the EU, Hong Kong, Singapore, and the Middle East.
US banking and regulatory issues cause USD Coin to lose market value. However, Circle Internet Financial Ltd. pledges to cover any shortfall, aiding USDC in recovering.
As per Bloomberg, Investors are moving away from the US due to the banking sector and regulatory challenges, resulting in a decrease in the value of stablecoin USD Coin. Circle Internet Financial CEO Jeremy Allaire has expressed his concern about the US banking and regulatory system. USD Coin, which is designed to maintain a constant value of $1, lost its market peg earlier this year but has since stabilized.
However, its total market capitalization has fallen to about $30.7 billion from a peak of over $56 billion in 2022, according to CoinGecko data. Stablecoins, which are commonly used by investors in trading, are often supported by reserves such as cash and bonds, and regulators have raised concerns about the risks they pose.
USD Coin or USDC’s market value has decreased by approximately $13 billion since March when US banking problems emerged. The token temporarily lost its market peg after discovering that $3.3 billion of the reserves supporting the stablecoin were held in the defunct Silicon Valley Bank. In an effort to restore confidence in the US financial system, officials have promised to refund depositors, and Circle has pledged to cover any shortfall, which has aided USDC in recovering its $1 value in cryptocurrency markets.
US crypto firms are struggling under tight regulations and a market downturn. The SEC considers most tokens unregistered securities and accuses many digital asset companies of non-compliance. The industry is calling on Congress to clarify crypto-asset rules, but progress has been slow due to political divisions. Stablecoin regulations, in particular, face uncertain prospects.
Jeremy Allaire, CEO of Circle Internet Financial, has expressed concerns about the competitiveness of the US dollar compared to blockchain technology and internet-based currencies. He said that while the European Union, Hong Kong, Singapore, and the Middle East are progressing on crypto rules, the US is lagging behind. Despite facing transparency issues with its reserves, Tether continues to be the largest token in the stablecoin sector, followed by USD Coin, which is backed by cash and short-dated US Treasuries.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
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