USDC and USDT supply declines despite bills

• USD Coin (CRYPTO:USDC) and Tether (CRYPTO:USDT) both recorded supply declines over the past seven days.
• USDC supply fell 0.7% to US$74.6 billion, while USDT supply slipped 0.1% to US$186.3 billion.
• The contraction came despite growing regulatory support and institutional adoption of stablecoin infrastructure.

USD Coin (CRYPTO:USDC) and Tether (CRYPTO:USDT) both recorded declines in circulating supply over the past week, with USDC falling from US$75.08 billion to US$74.6 billion and USDT decreasing from US$186.49 billion to approximately US$186.3 billion.

The reductions occurred despite increased attention on stablecoin regulation, including ongoing consideration of the CLARITY Act, implementation of the GENIUS Act and new stablecoin proposals from the Bank of England.

Together, USDC and USDT still account for about US$261 billion in circulating supply, according to DefiLlama data.

Institutional activity continued during the week, with Mastercard expanding stablecoin settlement support across eight blockchains and Japan's three largest banks forming a joint stablecoin council, although these developments did not translate into net growth in aggregate stablecoin issuance.

World Liberty Financial's USD1 (CRYPTO:USD1) was an exception, with supply rising 9.7% over the week to approximately US$4.85 billion, making it the fifth-largest dollar-pegged stablecoin by circulating supply.

The data suggests that recent growth has been concentrated among specific issuers rather than across the broader stablecoin market, despite a generally supportive regulatory environment.

Market participants are now watching progress on the CLARITY Act, which could provide issuers with a clearer federal regulatory framework and potentially influence future stablecoin issuance trends.

At the time of reporting, World Liberty Financial price was $0.05951.