As the global compliance process accelerates, USDT faces unprecedented challenges—this is not just a technological or market transformation, but potentially a liquidation of the 'old era.'
1. Countdown to regulation: the risks of USDT are shifting from hypothetical to real
In March 2025, the stablecoin regulatory bill officially passed in the US clearly states:
Illegal if unregistered: USDT has not obtained legal status within the US and may be delisted by multiple compliant platforms in the future;
High transparency audits: addressing historical issues like auditing gaps and account mixing present in USDT's early days, may be forced to disclose and reassess in the future;
High risk of derivative structured products: products like LSDT may face stricter regulations and could be classified as 'illegal structured financial instruments.'
If USDT's reserve assets encounter freezes or regulatory restrictions, it may lead to:
On-chain redemption surge, creating short-term liquidity shocks;
DeFi protocols 'de-USDT-ization,' weakening its status as collateral;
Compliant CEX platforms are gradually replaced by stablecoins like USDC, further marginalizing USDT.
👉 This is no longer a question of 'whether something will happen,' but rather 'when' and 'how quickly.'
2. The stablecoin landscape is being reshaped: USDT's dominance is gradually being diluted
1. USDC: the official stablecoin representative of the compliance era
Issued by Circle, holding a US trust license;
BlackRock custodies 90% of reserves, holding high-quality assets such as US treasury bonds and cash;
Has been adopted by institutions like Visa and Stripe for cross-border payments and settlements.
The compliance advantages of USDC make it the preferred choice for financial institutions and sovereign capital.
2. Trump Coin (USD₁): a speculative stablecoin backed by political topics
Backed by Trump's support camp, bound to electoral capital;
Launched on Binance and BSC, with global trading channels;
If Trump wins in 2025, it may become synonymous with 'civilian digital dollar.'
Although its long-term status remains unclear, it possesses high topicality and virality within specific cycles.
3. Strategic recommendations: adjust in advance, diversify risks
In the current situation, heavily investing in USDT is clearly high-risk. A more reasonable approach is 'structural transfer':
✅ 60~70% converted to USDC: prioritize ensuring asset safety and compliance;
✅ 10~20% explore Trump Coin (USD₁) or DAI: allocate small positions to capture structural opportunities;
✅ Maintain liquidity, focus on on-chain data and policy trends to respond to potential tail risks.
Written at the end:
USDT was once the core of on-chain liquidity, but now, the era of 'speed is king' is being replaced by 'compliance is fundamental.' Proactive adjustment and early deployment may be key to navigating the market storm in 2025.
