The following is a guest post and an opinion of Anastasija Plotnikova, CEO and co-founder of Fideum.
2025 is called ‘the year of the Stablecoin’, with stablecoins that rise in popularity and are gained worldwide grounds, especially under the new crypto-friendly American administration.
Leading Fiat-Stunned Stablecoins USDT and USDC have 92% of the market share. Tether, the issuer of USDT, has grown into a market capitalization of more than $ 140 billion, to support more than 400 million users, especially in sub -enforcement regions.
However, Tether’s dominance is confronted with increasing competition. Judicial and new competitors would like to take a market share, and new regulatory obstacles add pressure, especially in markets such as the European Union. This raises a critical question: Can Tether hold its place as the dominant Stablecoin in the midst of growing regulatory pressure and competition?
The EU and Tether
Tether’s USDT has recently been removed from stock exchanges in the EU due to non-compliance with the new markets in crypto-assets (MICA) instructions, which came into force at the end of last year. The regulations require that stablecoins meet the strict transparency and license rules, and companies that spend Stablecoins in the EU, must keep an Electronic Money Institution (EMI) a license and, if Fiat-Supported, ensure a 1: 1 reserveatio.
The deletion of Tether has caused considerable disruptions on the European market, reducing the access of the EU residents to stablecoins. Tether responded by accusing the EU of “hurried actions” and creating “a disorderly market”, although Mica had been developing for years and the European Securities and Markets Authority (ESMA) had warned exchanges since last summer. Ten stablecoin -mittenten were approved for operation under Mica, but Tether was not there.
Will the US be friendlier?
The EU is not the only area that Tether is confronted for regulatory challenges. The US Senate Bank Committee recently voted to send the Genius ACT legislation for payment-oriented Stablecoins-to the complete Senate. The bill would bring institutions of Stablecoins with market hoods of more than $ 10 billion under American federal regulations. Foreign Stablecoin-emenna, such as Tether, will be confronted with stricter reserve, liquidity and anti-money laundering requirements compared to domestic issues.
Only two issues meet the requirements of market capitalization for federal regulations as laid down in the bill – Tether and Circle. The latter, a vomiced issuer, has announced that it can meet the requirements of the account. Tether, who is located in El Salvador,, however, lacks a formal presence of the US and may have difficulty meet these new standards. This also makes vulnerable for extra regulatory control in the US.
Competitors rush to fill the gaps
While Tether is confronted with increasing regulatory challenges, competitors seize the opportunity. Among the emerging challengers, Reeve Collins, co-founder of Tether, who recently announced the launch of PI Protocol, is a yield-bearing Stablecoin supported by Real-World assets.
Pi-Protocol is intended to debut at Ethereum and Solana block chains in 2025. Although the PI protocol may not fully comply with MICA regulations, the proceeds-bearing structure offers advantages, in particular in the American market, where the SEC approved returns-stable stable stable stable stabiles in February.
Competitors such as Collins’s PI protocol can see Tether’s regulations problems as an opportunity to record the market share. Tether’s CEO Paolo Ardoino has expressed Trust in this possibility, and claims that the real goal of many competitors is to ‘kill tether’.
The stablecoin storm is released
Can Tether survive the growing competition and the increasing legal pressure? So far, Tether has confronted minimal disruption because of the considerably dominant market share, which leads the Stablecoin category in terms of market capitalization, as well as 24 -hour trade volume, with a broad margin. However, as the worldwide regulations catch up and new players enter the scene, Tether must carefully navigate the challenges. The outcome can be the fragmentation of the global Stablecoin markets and a distribution between UnregulaTed and regulated options.
