Whoever controls stablecoins controls the entire cryptocurrency industry.
In this high-stakes showdown, one side is Tether (USDT)—the dominant market leader with enormous profits but constant controversy. The other is Circle (USDC)—striving for mainstream acceptance and backed by Washington.
Why is Tether Under Fire?
Critics argue that USDT is a tool for money laundering by criminals and terrorist organizations. In October last year, The Wall Street Journal reported that the U.S. Treasury and Department of Justice were investigating whether Tether violated financial crime laws. In February this year, the U.S. Treasury directly accused USDT of funding Russia’s war efforts.
Meanwhile, the European Union has introduced laws banning unregulated stablecoins, leading Coinbase and other exchanges to delist USDT in Europe. Circle seized the opportunity, obtaining an EU stablecoin license and forming strategic partnerships—such as with Binance—to expand in the U.S. and European markets.
Tether’s Counterattack
U.S. Commerce Secretary Howard Lutnick, a former Trump ally, runs Cantor Fitzgerald, which holds a significant portion of USDT reserves. Tether has built connections with Trump’s circle through Lutnick and has even invested $775 million in the conservative streaming platform Rumble to gain political support.
In February, Trump signed an executive order pushing for a "Global Legal U.S. Dollar Stablecoin" strategy and formed a Presidential Cryptocurrency Task Force, with Lutnick as a key member. He could be Tether’s crucial defense against regulatory crackdowns.
Can USDT Survive?
Despite Trump’s partial support for Tether, Congress is advancing a new stablecoin bill. In February, Senators Lummis and Gillibrand introduced legislation aiming to eliminate “non-transparent stablecoins”, with USDT as the primary target. Meanwhile, USDC is positioned as the main beneficiary of the bill.
Since December last year, USDT’s growth has slowed, while USDC’s market cap has finally recovered to its pre-Silicon Valley Bank crisis level. Circle even relocated its headquarters to the World Trade Center in New York, reinforcing its path toward financial mainstream adoption.
If the U.S. government decides to fully ban USDT, it could be cut off from the global banking system, severing Tether’s financial lifeline and leading to the end of USDT.
Tether’s dominance in the crypto world now depends on Trump’s ability to resist regulatory pressure.
Why is USDT More Popular Than USDC in Asia?
In Asia, USDT remains the dominant stablecoin. Unlike USDC, USDT has lower regulatory scrutiny and higher anonymity, making it the preferred choice for DeFi and cross-border payments. On Asian exchanges and OTC markets, USDT’s trading depth far surpasses USDC.
How Can a Beginner Buy Their First USDT?
For crypto newcomers, buying USDT is not easy. OTC trading involves in-person cash transactions, which carry security risks, high fees, and fluctuating exchange rates. In Hong Kong, due to the Virtual Asset Service Provider (VASP) licensing system, major exchanges impose restrictions on local users. Licensed local exchanges, such as Hashkey Hong Kong, require a minimum investment of HKD 8 million.
Additionally, P2P transactions are prone to fraud, with risks such as fake payment receipts or even physical robbery. These challenges make acquiring USDT through traditional methods difficult.
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