Ethereum News Daily TheBitTimes.com

The market cap of USDC, a stablecoin issued by Circle, has reduced nearly by half over the past six months following a regulatory crackdown and banking crisis. Circle CEO Jeremy Allaire says that a cryptocurrency crackdown by the United States regulators has been a major factor behind the declining market capitalization of its stablecoin, USD Coin (USDC). Circle chief’s comments on the U.S. crackdown come amid heavy regulatory scrutiny following the collapse of the FTX exchange, a banking crisis and USDC’s momentary depegging. During an interview with Bloomberg TV, Allaire noted that there is a “huge amount of concern globally about the U.S. banking system,” and the “regulatory environment in the U.S..” USDC depegged in March, a direct result of the U.S. banking crisis. Circle’s $3.3 billion worth of USDC reserves was stuck with Silicon Valley Bank, which was one of the three crypto-friendly banks shut down by regulators. At the time, Circle had assured its customers that it had the b...

2022 saw the fall of major cryptocurrency firms. The trend has somewhat continued into 2023. After Silicon Valley bank [SVB] and Silvergate, Signature Bank was forced to shut down by New York financial regulators on Mar. 12. However, depositors have been notified that they would regain access to their funds as early as Monday, on Mar. 13. According to data, Circle , a prominent cryptocurrency firm entails a whopping $3.3 billion USDC reserve deposit in SVB. The industry has been hit with several incidents over the last couple of months. As the community tries to recover, another collapse follows suit. Similarly, the downfall of Signature Bank did cause havoc in the market. Now, Jeremy Allaire, Circle CEO mentioned on Twitter and affirmed that 100% of USDC reserves were “safe and secure.” JUST IN: Circle CEO says 100% of $ USDC reserves are safe and secure. — Watcher.Guru (@WatcherGuru) March 12, 2023 Further elaborating on the same, Allaire tweet...