According to CryptoPotato, a report released by Chainalysis shows that stablecoin activities are also shifting away from the United States. The report pointed out that starting around February 2023, the usage of stablecoins in North America has declined relatively compared to other digital assets. After the collapse of Silicon Valley Bank, which had a large risk exposure, people’s confidence in stablecoins such as Circle’s USDC has been shaken.

The report states that most stablecoin flows into the 50 largest crypto services have shifted from U.S.-licensed services to non-U.S.-licensed services.  While U.S. entities initially helped legitimize and seed the stablecoin market, a growing number of cryptocurrency users are conducting stablecoin-related activities through foreign-based trading platforms and issuers.

Additionally, the shift reduces U.S. oversight of stablecoins pegged to the dollar. Despite numerous bills introduced by pro-cryptocurrency politicians, Congress has been slow to regulate and legalize stablecoins.

In summary, cryptocurrency and stablecoin regulation will play an important role in reversing the downward trend in North America.