Crypto Realm reports:
Circle has received approval from the EU regulatory authorities for its stablecoin under the MiCA cryptocurrency framework. However, the network growth for both USDC and USDT has declined.
Despite Circle’s growth in the past few months against the Canadian dollar, it still lags behind Tether against the Turkish lira in terms of market capitalization. Nevertheless, the latest developments around the US dollar against the Canadian dollar may help the stablecoin reach new heights.
Circle Enters Europe
On July 1st, Circle received regulatory approval for its stablecoin under the EU’s Markets in Crypto-Assets (MiCA) framework for the first time, marking a significant victory for regulatory clarity in the digital asset domain.
The announcement by Jeremy Allaire, co-founder and CEO of Circle, brought relief to investors holding Circle’s US dollar to euro stablecoins, as they now evidently comply with the new regulations.
This eliminated concerns that investors would be forced to redeem their holdings or transfer them to other assets to remain compliant.
Circle also announced the selection of France as its European headquarters.
This decision was influenced by the progressive approach of French digital asset regulation and Circle’s solid working relationship with the French Prudential Supervision and Resolution Authority (ACPR).
Allaire also emphasized the historical significance of MiCA, the EU’s first comprehensive regulatory framework for digital assets.
He stated that this marks an important step forward for the legitimacy and stability of stablecoins and also demonstrates the maturity of the digital asset industry.
Will the US Dollar Against the Canadian Dollar Outperform the US Dollar Against the Canadian Dollar?
As of press time, Circle’s USDC stablecoin holds a market share of 20% with a market capitalization of 32 billion US dollars.
However, Tether remains the undisputed leader of stablecoins, with a 70% market share and a market capitalization of 112 billion US dollars.
Circle’s regulatory approval in Europe could be a turning point, boosting demand for USDC and potentially helping Circle close the gap with Tether.
This advantage comes at a critical moment for Circle, as its market share has been steadily eroded by Tether.
As a pioneer in regulatory compliance, Circle can position USDC as a safe and trustworthy haven for European investors, particularly those who may be cautious about the unregulated cryptocurrency market.
This could lead to a significant increase in demand for USDC, not just in Europe, but globally.
Despite this positive development, an analysis of Santiment data by AMBCrypto shows that the network growth for both tokens has declined in recent days.
This indicates a temporary drop in the number of new addresses for both stablecoins.
