USDT Dominates Crypto Portfolios in US, EU, and UK as Stablecoins Outperform Altcoins
Stablecoins, particularly Tether (USDT) and USDC, are leading cryptocurrency portfolios across the US, EU, and UK, capturing 86% of the $247 billion market. These fiat-backed assets provide investors with a safe haven from volatility while offering yield opportunities. Notably, Tether alone holds $98.5 billion in US Treasuries, further bridging the gap between crypto and traditional finance. Meanwhile, altcoins like Solana and Cardano are making a comeback in 2025, though their risk-reward profiles remain a consideration for investors.
Stablecoins Versus Altcoins in US, EU, and UK Portfolios
Stablecoins are dominating crypto portfolios across the US, EU, and UK, with Tether (USDT) and USDC commanding 86% of the $247 billion market. These fiat-backed assets offer investors a haven from volatility while generating yield—Tether alone holds $98.5 billion in US Treasuries, blurring lines between crypto and traditional finance.
Altcoins like Solana and Cardano are staging a comeback in 2025, though their risk-reward profile remains starkly different from stablecoins. European markets benefit from MiCA regulatory clarity, while US and UK investors navigate evolving frameworks.
Trump’s Crypto Law Could Kill Decentralized Stablecoins
The U.S. political shift under the new TRUMP administration has swiftly impacted the stablecoin market. With a pro-crypto agenda gaining momentum, the GENIUS Act emerges as a pivotal regulatory framework targeting stablecoins—digital assets pegged to fiat currencies like the U.S. dollar.
The Act mandates stringent requirements: issuers must obtain state or federal licenses, and stablecoins must maintain 1:1 backing by cash or U.S. Treasuries. This MOVE could reshape the $261 billion market, favoring compliant players like USDT and USDC while challenging decentralized alternatives.
Market analysts warn of a potential consolidation, where regulatory clarity comes at the cost of innovation. 'The GENIUS Act isn’t just compliance—it’s a gatekeeper,' notes Quinten, a crypto expert. The bill’s passage signals a broader trend of institutionalization in digital finance, with the SEC poised to enforce tighter oversight.
DoJ Files $225M Civil Forfeiture Case Linked to Crypto Scam Involving USDT
The U.S. Department of Justice has initiated a civil forfeiture action targeting over $225 million in laundered USDT tied to Shan Hanes, the disgraced former CEO of Heartland Tri-State Bank. Hanes embezzled $47 million from the Kansas-based agricultural lender, leading to its collapse in 2023, before losing much of the stolen funds to a pig-butchering crypto scam.
The scam, linked to a Philippines call center, involved coercing victims into depositing USDT into 93 accounts. Funds were then cycled through up to 100 intermediary wallets to obscure their origin before being funneled through OKX exchange accounts in two reshuffling phases. A crypto exchange provided critical blockchain analysis that enabled investigators to trace the laundering operation.
Peter Schiff Challenges U.S. Government's Stablecoin Optimism
Economist Peter Schiff has openly contested the U.S. government's stance that stablecoins will bolster the dollar's global dominance. Schiff argues that these digital assets, pegged to the dollar, will primarily serve as trading pairs within the crypto ecosystem rather than facilitate international payments.
The critique comes as the U.S. Senate passes the GENIUS stablecoin law, signaling regulatory support for the asset class. Schiff warns that mounting federal deficits and inflationary pressures could diminish demand for dollar-pegged stablecoins, undermining their perceived role as a dollar-preserving tool.
This divergence in views highlights the tension between crypto's potential to reshape finance and the macroeconomic forces that may constrain its impact. The debate unfolds against a backdrop of escalating adoption of stablecoins like USDT and USDC across exchanges including Binance, Coinbase, and Bybit.
