March 10, 2025

Stablecoins in Review: March 4, 2025

This Week Summary on Stablecoin News:

The U.S. Senate Banking Committee is set to review the “GENIUS Act,” a proposed bill aiming to establish a regulatory framework for stablecoin issuers.
Binance announced plans to delist trading pairs for stablecoins that are not MiCA-compliant, including USDT and DAI.
Data indicated a $121 million increase in stablecoin liquidity on the Tron network, contrasted by a $652 million decrease on Ethereum.
Tether faced a legal setback as a London High Court judge denied its request to block Swan Bitcoin from pursuing a lawsuit in California against six former Swan employees.
Crypto Market showed significant bounce after Trump announced BTC, ETH SOL, XRP and other crypto strategic reserves.

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GENIUS Act: U.S. Senate to Review New Stablecoin Bill

The U.S. Senate Banking Committee is reviewing the GENIUS Act, a proposed bill that seeks to regulate stablecoin issuers. The legislation would introduce federal oversight for issuers exceeding $10 billion in market capitalization, mandating 1:1 asset backing and stricter compliance measures. The bill aims to bridge the gap between decentralized finance (DeFi) and traditional finance (TradFi) while ensuring stablecoins remain a reliable financial instrument. If passed, the GENIUS Act could set a precedent for global stablecoin regulation, influencing how issuers operate and integrate within the financial system.

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Binance to Delist Non-MiCA-Compliant Stablecoins in Europe

Binance has announced its plan to delist trading pairs for stablecoins that fail to meet MiCA regulations, affecting major assets like USDT and DAI in the European Economic Area (EEA). This decision aligns with the Markets in Crypto-Assets (MiCA) framework, set to take effect later this year, which demands greater transparency and compliance for digital assets. The move could significantly reshape stablecoin dominance in Europe, possibly benefiting MiCA-compliant stablecoins like EUROe or Circle’s EURC.

Stablecoin Liquidity Shifts: Tron Gains $121M, Ethereum Loses $652M

Recent data reveals a $121 million increase in stablecoin liquidity on Tron, while Ethereum saw a massive $652 million outflow. This shift underscores growing demand for cost-efficient stablecoin transactions, as Tron’s lower fees and faster settlement times continue to attract liquidity. Meanwhile, Ethereum’s decrease might be linked to higher gas fees, shifting DeFi trends, and regulatory uncertainty. This trend could impact DeFi lending, borrowing, and trading activity, influencing where institutions and retail users deploy their stablecoin reserves.

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Tether Faces Legal Setback in Swan Bitcoin Dispute

Tether has suffered a legal blow as a London High Court judge ruled against its request to block Swan Bitcoin from pursuing a lawsuit in California. The dispute centers on a dissolved Bitcoin mining joint venture between Tether and Swan, involving allegations against six former Swan employees. This case adds to Tether’s growing legal challenges, as the company continues to defend its operations and partnerships in various jurisdictions. The ruling means that Swan Bitcoin can proceed with its legal action, potentially uncovering more details about Tether’s past dealings.

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Crypto Market Rebounds as Trump Endorses BTC, ETH, SOL, and XRP

The crypto market saw a major rebound following Donald Trump’s announcement that the U.S. would consider holding BTC, ETH, SOL, XRP, and other crypto assets as strategic reserves. This unexpected move signals potential institutional and governmental adoption of crypto, driving investor confidence. Bitcoin and Ethereum both posted double-digit gains, while Solana and XRP surged amid speculation that the U.S. might integrate these assets into broader financial strategies. While details remain unclear, the endorsement boosts sentiment for regulatory clarity and long-term mainstream adoption.

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‍This Weekly Summary is prepared by brava.xyz.

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