While USDC itself is not a privacy coin, it has been indirectly affected by regulatory actions targeting privacy-enhancing tools. For instance, in August 2022, Circle, the issuer of USDC, froze approximately $75,000 in USDC linked to the sanctioned cryptocurrency mixer Tornado Cash, following the U.S. Treasury Department's allegations that the mixer laundered over $7 billion since 2019 .

Furthermore, the European Union's Markets in Crypto-Assets (MiCA) regulations have introduced stringent rules for stablecoins, leading platforms like Coinbase to discontinue USDC rewards programs in Europe . These developments reflect a broader trend of increasing regulatory scrutiny over cryptocurrencies, particularly those offering enhanced privacy features. $USDC