Apr 26, 2023
U.S. Crypto Crackdown Causes USDC Market Cap to Plummet
The Chief Executive Officer of Circle, Jeremy Allaire, recently spoke with Bloomberg TV and shed light on the U.S. regulatory environment and its impact on the cryptocurrency market. Allaire noted that the U.S. banking system is facing a huge amount of concern globally and that the current regulatory environment is having a major impact on Circle’s stablecoin, USD Coin (USDC).
USDC has been on a downward spiral since the collapse of the FTX exchange, a banking crisis, and its momentary depegging from the U.S. dollar. At the time, Circle had assured its customers that it had the backing from investors to fill the gap, but the market reacted quickly to the news and USDC depegged from the U.S. dollar.
USDC had a market cap of $56 billion at its peak and was sitting right behind Tether-issued USDT, but since the banking crisis and USDC’s depeg, the stablecoin’s market capitalization has been cut nearly in half, currently sitting at $30.7 billion.
Coinbase had also warned that the lack of regulatory clarity may force crypto companies to look for opportunities overseas. With the recent passing of the Markets in Crypto-Assets Act (MiCA) by the European Parliament and the push for adoption by Hong Kong, Allaire believes the U.S. will be left behind.
The U.S. Securities and Exchange Commission, led by Gary Gensler, has been on an enforcement spree since the FTX collapse saga. The SEC has threatened regulatory action against multiple crypto platforms and exchanges, which has caused a lot of pushback from policymakers and crypto proponents.
As a result of the current U.S. regulatory environment, many crypto and web3 companies have had to turn to alternative methods of promotion and marketing. NFTs have become increasingly popular as a way to promote and market projects in the web3 space. NFTs have become a popular form of promotion and marketing, with many companies turning to Twitter NFT marketing, NFT marketing agencies, and even web3 agencies to help them promote and sell their NFTs.
It is clear that the current regulatory environment in the U.S. is having a major impact on the cryptocurrency market and the web3 space. It remains to be seen how the U.S. will respond to the changing landscape and what the impact will be on the industry.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.