Reportedly, initially the market value of USDC was around $56 billion
As per reports, Jeremy Allaire, CEO, Circle, a crypto exchange platform, mentioned that the reason behind the fall of the market value of the stablecoin could be attributed to the limitations implied by the United States regulations, stated Cointelegraph.
Sources revealed that the regulations by the United States were implemented after the decline of the FTX exchange, USDC’s momentary de-pegging and a banking crisis, added Cointelegraph. Furthermore, Allaire told Bloomberg TV that there is a “huge amount of concern globally about the U.S. banking system and the regulatory environment in the U.S.” Cointelegraph highlighted.
It is expected that previously the market value of USDC was around $56 billion, but after USDC’s depeg and banking crisis the market value of stablecoins has reduced to half amounting to about $30.7 billion, added Cointelegraph.
As reported by Cointelegraph, Coinbase, a cryptocurrency exchange, had mentioned that the unavailability of clear regulations might make the crypto platforms search for other scopes. Furthermore, Allaire believes that “It’s a critical moment here in the U.S., and, as I like to say, it’s really a moment for Congress to step up,” Cointelegraph concluded.
(With insights from Cointelegraph)
Source:indianexpress.com