Circle CEO Attributes Decreasing USDC Market Cap to US Crackdown on Crypto

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Jeremy Allaire, CEO of Circle, has stated that the recent regulatory crackdown by the United States has had an effect on the market capitalization of its stablecoin, USD Coin.

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 US.”

USDC’s market cap has taken a hit since the banking crisis and USDC’s depegging, falling from $56 billion at its peak to $30.7 billion.

Coinbase has also warned that the lack of regulatory clarity may force crypto companies to look for opportunities overseas, as the European Parliament has recently passed the Markets in Crypto-Assets Act (MiCA) and Hong Kong has pushed for adoption.