Blockchain analysis company TRM Labs reported on Tuesday that up to 99% of stablecoin transaction activity in 2024 will be for legitimate purposes. This data suggests that the market's perception of the strong link between cryptocurrency and criminal activity is overly exaggerated.
Stablecoin usage is becoming increasingly compliant
TRM is not the only institution observing the trend of legitimizing stablecoin applications. Another research firm, Artimas, recently found that B2B stablecoin transfers between businesses have surpassed P2P payments between individuals, becoming the largest and fastest-growing application scenario in terms of transaction volume. TRM emphasized in the report:
"A significant feature of stablecoins is traceability: because they operate on public blockchains, their transparency often exceeds that of cash when combined with on-chain analysis tools. Additionally, stablecoin issuers can freeze or destroy illegal proceeds, enhancing their ability to manage funds."
GENIUS Act marks a turning point for corporate adoption
On the same day the report was released, the U.S. (GENIUS Act) was also about to enter the Senate voting process. This act is considered one of the most comprehensive regulatory proposals for stablecoins in U.S. history, expected to gain bipartisan support and pass smoothly. The content of the act includes: a stablecoin issuance licensing system, statutory reserve requirements, mandatory audits and financial disclosures, consumer protection mechanisms, and anti-money laundering (AML) standards, among other regulatory frameworks.
TRM stated:
"The GENIUS Act marks a clear shift in U.S. digital asset policy, moving from a past of fragmented enforcement and vague guidance to a new phase of framework-based regulation led by legislation."
These provisions are believed to further suppress illegal uses and provide a regulatory foundation for large banks and corporations to issue stablecoins. Moreover, according to previous reports by Zombit, due to the gradual clarification of stablecoin regulations, companies such as Apple, Google, Airbnb, and social platform X have begun showing significant interest in stablecoin technology.
Still the primary asset for illegal transactions, but the overall proportion is declining
However, it is worth noting that TRM also pointed out in its Q1 2025 (Cryptocurrency Crime Report) that despite a significant increase in overall legitimate use, stablecoins still account for 60% of all crypto crime transaction volume. The report states:
"Even though the black market has some interest in privacy coins (like Monero), stablecoins remain the primary tool for funding terrorism and other illegal activities."
However, the overall volume of illegal transactions is still declining. TRM pointed out that the total amount of illegal crypto transactions in 2024 will be $45 billion, down 24% year-on-year, accounting for only 0.4% of total crypto transaction volume. This is mainly due to the active involvement of law enforcement agencies and crypto operators in anti-money laundering and risk control.
Source
