USDC Overtakes USDT in Blockchain Activity Amid Policy Shift on Firearms (2025 Update)

• Why Is USDC Growing Faster Than USDT?
• What Changed in Circle’s Firearms Policy?
• How Does Regulation Impact Stablecoin Competition?
• What’s Next for Crypto and Controversial Industries?
• FAQs

Circle’s USDC is now outpacing Tether’s USDT in blockchain transactions and market cap growth, fueled by regulatory clarity and institutional adoption. Meanwhile, Circle’s updated terms allowing legal firearm purchases with USDC have sparked praise from conservative groups and Republican lawmakers. Here’s a deep dive into the implications for stablecoins and the crypto market.

Why Is USDC Growing Faster Than USDT?

JPMorgan analysts report that Circle’s USDC has surged by 72% in market capitalization since January 2025, reaching $75 billion, while USDT grew by only 32%. The gap highlights a broader market shift toward stablecoins prioritizing transparency and compliance. "USDC’s periodic audits and MiCA compliance make it the go-to choice for regulated entities," notes the BTCC research team. Visa, Mastercard, and Stripe integrations have further boosted USDC’s utility for on-chain settlements.

What Changed in Circle’s Firearms Policy?

Circle reversed its ban on firearm-related transactions this month, now permitting purchases that comply with applicable laws. The MOVE drew applause from the National Shooting Sports Foundation (NSSF) and Senators like Bill Hagerty, who called it a win against "ideological financial discrimination." Crypto advocate Cynthia Lummis added that Circle’s stance protects constitutional rights by aligning with existing legislation—not adding extra restrictions.

How Does Regulation Impact Stablecoin Competition?

MiCA regulations in Europe have widened the gap between USDC and USDT, with the latter facing delistings on major exchanges. Meanwhile, USDC’s transparent reserves and institutional appeal are driving adoption. "Wall Street’s upcoming stablecoin launches will intensify this trend," predicts a BTCC analyst. Data from CoinMarketCap shows the total stablecoin market now exceeds $300 billion.

What’s Next for Crypto and Controversial Industries?

With USDC’s policy shift, sectors like cannabis and gambling—historically sidelined by financial services—are watching closely. As stablecoins gain traction, their role in enabling legal but stigmatized commerce could redefine financial inclusion.

FAQs

Why did Circle update its firearms policy?

Circle revised its terms after pressure from conservative groups, allowing legal firearm purchases to comply with U.S. law rather than imposing extra bans.

How much has USDC’s market cap grown in 2025?

USDC’s market cap jumped from $43 billion to $75 billion this year—a 72% increase—per JPMorgan data.

Is USDT losing ground to USDC?

Yes, USDT’s growth rate (32%) lags behind USDC’s, partly due to regulatory hurdles and less institutional trust.