Tether and USDC dominate the stablecoin industry, accounting for 90% of the market cap. New legislation may shake up the rankings. The stablecoin industry is valued at $250 billion, projected to reach $2 trillion. Tether holds a $164 billion market cap, while USDC stands at $64 billion. Tether and Circle back stablecoins with cash and cash equivalents.

Stablecoins are pegged 1:1 to the dollar, with Tether and USDC leading in trading volume. Tether holds over $120 billion in Treasury holdings. Dai, Ethena USDe, and World Liberty Financial USD1 round out the top five stablecoins. The Genius Act aims to regulate stablecoins, potentially impacting the industry’s landscape.

The stablecoin industry faces differentiation in collateral, trading volume, and issuer location. Tether and USDC maintain their positions, but new entrants could disrupt the market. With tech companies and retail giants eyeing stablecoins, the top five may see changes. Consider investing in stablecoins cautiously, as risks and regulations evolve.

Read more at Nasdaq: Here Are the 5 Largest Stablecoins by Market Cap