Circle CEO Jeremy Allaire has said that the US regulatory crackdown was a major factor behind stablecoin USD Coin's (USDC) declining market capitalization. Allaire noted that there is "huge amount of concern globally about the US banking system" and the "regulatory environment in the US." USDC's market cap has been cut nearly in half, currently sitting at $30.7 billion, following the banking crisis and its depeg from the US dollar earlier this year. Coinbase had also warned that the lack of regulatory clarity may force crypto companies to look for opportunities overseas. Allaire believes the US will be left behind without regulatory clarity.

(By PRASHANT JHA)