Stablecoin dominance is positive for crypto, Binance CEO explains

The CEO of Binance, Changpeng Zhao, recently tweeted that a lot of fiat money is sitting on the sidelines as a result of stablecoins' growing dominance.

CZ claims that if cryptocurrency investors wanted to exit the market, they wouldn't own stablecoins.

Three stablecoins are now listed in the top 10 cryptocurrencies on CoinMarketCap, the most popular coin ranking website owned by Binance: Circle's USDC, Binance's own BUSD, and Tether's USDT. Their market value as a group exceeds $138 billion.

Prior to the contentious project's implosion in May, which led to a significant sell-off in the cryptocurrency market, Terra's algorithmic TerraUSD (UST) stablecoin briefly ranked among the top 10 cryptocurrencies earlier this year.

Stablecoins are currently the subject of intense regulatory attention due to Terra's collapse. U.S. Treasury Secretary Janet Yellen pleaded with Congress to approve a law outlining stablecoin regulation and oversight.

When the bill reaches President Joe Biden's desk at the end of the year, it may become law, despite the House delaying its passage earlier this week.

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