Circle's USDC has surpassed Tether's USDT in euro-denominated stablecoin trading volume. According to Kaiko, USDC now holds a 56% market share in this segment, a significant increase from the 10% recorded in January 2024.
The shift in market dynamics follows the implementation of the Markets in Crypto-Assets Regulation (MiCA) in the European Economic Area. Major exchanges have restricted USDT trading to comply with these new rules, which favor stablecoins that meet EU regulatory standards.
USDC has also gained an advantage in liquidity, with order books currently approximately 40% deeper than those of USDT. Despite this regional shift, Tether remains the largest stablecoin globally, with a circulating supply roughly 2.5 times larger than that of USDC.
The European Banking Authority recently designated USDC as the first significant e-money token under MiCA. This classification subjects the asset to direct supervision by the authority and imposes additional regulatory requirements on the issuer.
Similar regulatory trends are emerging in the United States under the GENIUS Act. The Office of the Comptroller of the Currency has established new reserve and redemption rules for issuers, effective January 18, 2027, with further platform restrictions scheduled for July 2028.
