As global regulators ramp up oversight of the crypto industry, demand for censorship-resistant “dark stablecoins” could soon spike, according to Ki Young Ju, CEO of blockchain analytics firm CryptoQuant.
In an X post, Ju warned that the era of freely transferring stablecoins without government interference may end. He predicted that future regulations—especially from countries like the United States—could enforce restrictions on stablecoin transactions, similar to traditional banks’ operations.
“Soon, any stablecoin issued by a country could face strict govt regulation, similar to traditional banks. Transfers might automatically trigger tax collection through smart contracts, and wallets could be frozen or require paperwork based on government rules,”
Ju explained.
This shift could drive users toward alternatives that resist censorship, particularly those used for large cross-border transfers. Ju believes such dark stablecoins may emerge algorithmically, using decentralized protocols to maintain value rather than being backed by physical assets, making them less vulnerable to state control.
He floated the idea of decentralized stablecoins pegged to regulated assets like USDC, using oracle systems like Chainlink to track their value. Another possibility, he said, could involve stablecoins issued in jurisdictions with minimal financial censorship—or even major players like Tether refusing to comply with U.S. regulations under a future Trump-led administration.
“USDT itself used to be considered a censorship-resistant stablecoin,”
Ju noted.
“If Tether chooses not to comply with US government regulations under a future Trump administration, it could become a dark stablecoin in an increasingly censored internet economy,”
Despite the looming crackdown, the stablecoin market shows no signs of slowing. According to a recent Citigroup report, the market capitalization of U.S. dollar-pegged stablecoins surged to over $230 billion in April, up 54% from last year. Tether (USDT) and Circle’s USD Coin (USDC) dominate, commanding nearly 90% of the market.
Notably, according to reports citing Senate Majority Leader John Thune, the U.S. Senate is preparing to take up stablecoin legislation before the Memorial Day recess on May 26.
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