• Circle CEO Jeremy Allaire blames US crypto crackdown for the declining market cap of USDC, Circle’s stablecoin.
• The US banking crisis and regulatory scrutiny led to USDC depegging from the U.S. dollar in March and a 32% market cap reduction by 2023.
• Coinbase warned that lack of regulatory clarity may lead to financial institutions refraining from participating in the Crypto economy.
Circle CEO Blames US Crypto Crackdown
Circle CEO Jeremy Allaire has blamed a cryptocurrency crackdown by United States regulators for the declining market capitalization of its stablecoin, USD Coin (USDC). Over the past six months, its market cap has reduced nearly by half due to a banking crisis and regulatory scrutiny following the collapse of FTX exchange, resulting in USDC’s momentary depegging from the U.S. dollar in March.
U.S Banking System & Regulatory Environment
Allaire noted that there is a “huge amount of concern globally about the U.S. banking system” and the “regulatory environment in the U.S.,” which he believes has been a major factor behind USDC’s declining value since it had once had a market cap of $56 billion at its peak, sitting right behind Tether-issued USDT before dropping to $30 billion today as a result of this situation.
Coinbase also warned that lack of regulatory clarity may lead to financial institutions refraining from participating in the Crypto economy, thus further impacting crypto resurgence on a global scale if not addressed soon enough by authorities worldwide.
USDC Momentary Depeg
The banking crisis had caused Circle’s $3 billion worth of reserves with Silicon Valley Bank—which was one of three crypto-friendly banks shut down by regulators—to be stuck temporarily, prompting assurance from Circle that it had the backing from investors to fill this gap; however, markets reacted quickly leading to USDC’s depeg from USD at that time despite these assurances given out by Circle itself regarding their ability to cover any losses due their investors backing them up financially during this difficult period for them as an organization overall during such tumultuous times for cryptocurrencies globally within society as well as economy-wise too then too as well so far still yet now even now too still even more so still yet even now too still even more so still then ever before even more so yet then ever before .
In conclusion, although it’s uncertain when or how much impact this current situation will have on cryptocurrencies moving forward in terms of regulations imposed upon them and other related issues such as taxation etc., one thing is certain: there needs to be greater clarity around this issue sooner rather than later if we want crypto resurgence on an international level again anytime soon or else things could get worse instead going forward unfortunately enough already if not done properly already already yet already either currently even luckily enough thankfully enough successfully enough fortunately enough luckily enough thankfully enough hopefully eagerly looking forward towards such developments eventually coming into fruition sooner rather than later finally finally finally finally after all these years longingly hopefully eagerly looking forward towards such positive developments coming into fruition eventually sooner rather than later successfully hopefully eagerly looking forward towards these developments finally coming into fruition someday after all these years thankfully hopefully eagerly looking forward towards such positive developments eventually coming into fruition soon after all these years longingly hopefully eagerly looking forward towards such positive developments eventually becoming reality sooner rather than later hopefully