The latest article from blockchain intelligence platform TRM Labs reveals that stablecoins account for over 60% of total cryptocurrency trading volume, a significant increase from just 35% two years ago.
This growth occurred despite the lack of a clear federal legal framework. However, with the Senate's passage of the Genius Act yesterday, this sector may soon achieve the regulatory clarity it has long awaited.
Global Stablecoin Acceptance Reaches New Heights
According to the blog, in the first quarter of 2025 alone, stablecoins accounted for 28% of total cryptocurrency trading volume. Moreover, TRM emphasizes that top stablecoins consistently captured at least 4% of the cryptocurrency market capital throughout 2024 and 2025.
"TRM data shows that stablecoins have become a core feature of the digital asset market — not just for trading, but also for payments, transfers, and savings," the blog wrote.
Notably, stablecoins pegged to the USD are the top choice for many cryptocurrency users. In fact, over 90% of stablecoins backed by fiat currency are linked to the USD.
The acceptance of these stablecoins is increasing in regions like Latin America, Sub-Saharan Africa, and Southeast Asia. Individuals and businesses are turning to these assets as an alternative to the traditional financial system. Moreover, they provide a more reliable means of accessing USD and facilitate faster cross-border transactions.
TRM also emphasized that in 2024, 99% of stablecoin activity was legal. These tokens supported various legal use cases, including payments, decentralized finance (DeFi), e-commerce, and cross-border transfers.
However, the blockchain intelligence platform noted that the speed, liquidity, and stability of stablecoins have made them a preferred tool for illegal activities, accounting for 60% of illegal cryptocurrency transaction volume in the first quarter of 2025.
Abusive practices include ransomware payments, terrorist financing, romance and investment scams, sanction evasion, over-the-counter fraud, and large-scale money laundering. Despite growing interest in privacy coins like Monero, stablecoins remain the asset of choice for bad actors.
GENIUS Act Paves the Way for Stablecoin Regulation
The GENIUS Act represents an important step in addressing these challenges. The legislation seeks to establish a federal legal framework for stablecoin regulation, focusing on consumer protection, market stability, and US leadership in digital finance. It includes provisions aimed at restricting the illegal use of these assets.
BeInCrypto reported yesterday that the bill was passed in the Senate with strong bipartisan support, marking an important milestone for this legislation.
"The Senate's passage of the GENIUS Act is a critical step in the right direction for our country. Stablecoin regulation will benefit all Americans as it is a foundation not just for blockchain innovation but also for financial autonomy. This bill demonstrates that an overwhelming majority from both parties understands the immense potential stablecoins can bring," Veronica McGregor, Legal Director of Exodus, told BeInCrypto.
She also praised the Senate for its determination to pass the bill with bipartisan support. The GENIUS Act will now move to the House of Representatives. McGregor expressed hope that the legislative momentum will continue there.
