​Stablecoins have rapidly become the dominant force in cryptocurrency markets, accounting for over 60% of all transaction volume, according to a new blog post by blockchain intelligence firm TRM Labs. 

This figure marks a dramatic rise from just 35% two years ago, underscoring the shift toward fiat-backed digital assets for use in trading, remittances, payments, and savings, reports BeInCrypto.

In the first quarter of 2025 alone, stablecoins made up 28% of all crypto transaction activity, while consistently representing at least 4% of total crypto market cap throughout 2024 and 2025. Dollar-pegged stablecoins remain the overwhelming choice, comprising over 90% of circulating fiat-backed supply. Emerging markets in Latin America, Southeast Asia, and sub-Saharan Africa are increasingly relying on these assets for dollar access and faster cross-border settlements, highlighting their role as financial lifelines outside traditional banking rails.

Despite TRM Labs noting that 99% of stablecoin usage in 2024 was lawful, the same report warns that these assets are increasingly exploited for illegal purposes. In Q1 2025, stablecoins were linked to 60% of illicit crypto transaction volume, largely due to their speed, liquidity, and widespread acceptance. Criminal use cases cited include ransomware payments, terrorist financing, sanctions evasion, romance scams, and large-scale money laundering. 

While privacy coins like Monero have historically been linked to nefarious activity, stablecoins’ scale and accessibility now make them more attractive to bad actors. This dual nature — enabling both financial inclusion and exploitation — has intensified the urgency for clear regulation, as the sector walks a fine line between utility and risk.

The long-anticipated Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act took a major step forward this week after passing in the Senate with strong bipartisan backing. The legislation establishes a comprehensive federal regulatory framework for stablecoins, emphasizing consumer protections, market stability, and national competitiveness in the digital finance era. Provisions in the bill target misuse by introducing enhanced compliance obligations and risk management standards for issuers. 

Industry leaders have welcomed the move, with Veronica McGregor, Chief Legal Officer of Exodus, calling it a “momentous step” toward legitimizing stablecoins. She praised the bipartisan support as a signal of growing political recognition of stablecoins’ potential to drive innovation and financial autonomy. The bill now heads to the House of Representatives, where lawmakers are expected to weigh in on final regulatory structures that could shape the future of the global stablecoin economy.

Recently we wrote that ​the U.S. Senate has approved the “Guiding and Establishing National Innovation for U.S. Stablecoins” (GENIUS Act), marking the first major cryptocurrency initiative to pass one chamber of Congress.