- The Trump administration openly supported stablecoins, influencing market growth for the two largest ones: USDC by Circle and USDT by Tether.
- USDT’s market capitalization increased from approximately $138 billion to $183 billion during this period.
- USDC showed a stronger relative growth, rising about 59% from $48 billion to $76 billion, compared to USDT’s 32.5% increase.
- The GENIUS Act, signed into law during Trump’s term, restricts offshore stablecoin operations like Tether and favors U.S.-based companies like Circle.
- Tether plans to launch a U.S.-based stablecoin led by Bo Hines, a former adviser to Trump, while also working with Cantor Fitzgerald, a firm linked to Trump’s commerce secretary.
During Donald Trump’s administration, support for stablecoins became explicit, with significant growth seen in the two largest U.S. stablecoins: USDC issued by Circle and USDT issued by Tether. This period included regulatory changes meant to shape the stablecoin market in the United States.
USDT’s market capitalization rose from about $138 billion to $183 billion. In comparison, USDC’s market cap increased from around $48 billion to $76 billion. However, when examining relative growth rates, USDC outpaced USDT by growing approximately 59% while USDT grew by 32.5%.
The Trump administration enacted the GENIUS Act, a stablecoin regulation bill designed to limit offshore stablecoin issuers like Tether, which is headquartered in El salvador, from operating easily in the U.S. This regulatory move favored companies like Circle, which are based domestically.
Following this, Tether announced plans to introduce a U.S.-based version of its stablecoin. The project is led by Bo Hines, who served as the executive director of Trump’s Council of Advisers on Digital Assets before joining Tether. Furthermore, Tether uses Cantor Fitzgerald to manage its reserves, a firm started by Howard Lutnick, who was Trump’s commerce secretary.
Tether is also noted as a contributor to the efforts involving the demolition of the White House East Wing and the planned construction of a new ballroom for Trump. Coinbase, which owns a significant stake in Circle, is another donor to this project.
For more information, see the interactive content and details on Circle vs. Tether: What’s in the reserves?.
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