Tether vs. Circle: The Battle for Stablecoin Dominance Intensifies

Tether’s longtime CFO, Giancarlo Devasini, has stepped down and now serves as chairman, maintaining a low profile in Lugano, Switzerland. In contrast, Circle founder Jeremy Allaire actively engages with politicians and Wall Street executives, highlighting the ideological and business rivalry between the two stablecoin giants.

Tether upholds crypto’s decentralized ethos, while Circle seeks regulatory approval to integrate stablecoins into traditional finance. Devasini reportedly stated, “Circle will not win if Tether is alive,” emphasizing the fierce competition. If regulators succeed in tightening restrictions, Circle’s USDC could gain market share, reinforcing stablecoins within the mainstream financial system. However, Tether has repeatedly shown resilience, navigating concerns over its reserves and regulatory scrutiny.

Three U.S. bills—the Senate’s GENIUS Act, the House’s STABLE Act, and another developed by Maxine Waters and Patrick McHenry—aim to regulate stablecoins by imposing stricter reserve and reporting requirements. JP Morgan analysts suggest that if these bills pass, Tether may need to adjust its reserves to comply. However, the legislative process remains uncertain.

Allaire describes digital currency as a “technology superpower dollar” that enhances the U.S.’s global influence. He argues that stablecoins, particularly USDC, can reduce transaction fees and boost financial efficiency, benefiting both households and businesses. USDC, backed by U.S. Treasury bills and cash, has powered trillions in transactions, growing over 100% in the past year.

As stablecoin regulation looms, the industry faces a pivotal moment. Whether Tether continues to dominate or Circle pushes stablecoins further into traditional finance, the outcome will shape the future of digital currencies worldwide.