Analysts Estimate 99% of Stablecoin Transactions as Legitimate

Over 99% of stablecoin transactions in 2024 were legitimate, according to a blog by TRM Labs.

Despite their predominantly legal use, stablecoins accounted for 60% of illegal transaction volume in the first quarter of 2025. Experts noted their use in money laundering, terrorism financing, and fraud.

TRM Labs highlighted the GENIUS Act, a bill passed by the US Senate, which establishes the country’s first comprehensive regulatory framework for fiat-backed stablecoins.

What Does the Bill Propose?

The GENIUS Act introduces unified standards for issuers. Key provisions include:

• dual licensing at both federal and state levels;
• mandatory 1:1 backing in highly liquid assets such as US dollars or short-term government bonds;
• regular audits and public reporting on reserve composition;
• compliance with AML regulations;
• consumer protection measures;
• restrictions on algorithmic stablecoins.

According to TRM Labs, stablecoins account for over 60% of all cryptocurrency transaction volume, with more than 90% pegged to the US dollar.

Next Steps

The GENIUS Act must be reconciled with the House of Representatives, where an alternative document, the STABLE Act, was previously introduced. Both projects share common goals but differ in details.

Lawmakers need to develop a unified version of the document. Once approved by both chambers, it will be sent to the president for signing. If enacted, regulators will begin drafting implementing regulations and licensing procedures.

Back in previous reports, former BitMEX CEO Arthur Hayes and TYMIO founder Georgy Verbitsky warned of a bubble in the stablecoin market. Experts believe that a successful Circle listing could trigger a wave of IPOs from imitator companies.