According to CoinGecko data, Tether (USDT) has reached its all-time high while other stablecoins pegged to the US dollar have seen a decline in market share over the past year. Circle's USD Coin (USDC) has dropped from 34.88% to 23.05%, Binance USD (BUSD) from 11.68% to 4.18%, and Dai (DAI) has remained steady at 3.66%. Tether's market dominance has increased from 47.04% to 65.89%, with a market capitalization of $83.1 billion. Circle CEO Jeremy Allaire has attributed USDC's declining market capitalization to US regulators' crackdown on crypto.

The European Systemic Risk Board has called for more transparency in the digital assets market, particularly for stablecoin reserves. Tether has been criticized for a lack of transparency and was fined $18.5 million in 2021 for allegedly misrepresenting the fiat backing for its reserves. The company has since sought to reduce its exposure to the banking system and increased its U.S. Treasury bills to 64% of its reserves. Circle has also adjusted its reserves to mitigate risk.