According to @rovercrc, instability in U.S. trade and fiscal policy is weakening the dollar's status as the primary reserve currency, creating a significant growth opportunity for EUR-pegged stablecoins. This trend is amplified by the European Union's pro-crypto MiCA framework, which provides a clear regulatory path for issuers and could give compliant euro stablecoins like EURC an advantage over non-compliant competitors such as Tether. While this macro shift develops, the broader crypto market is experiencing a short-term rally. Major cryptocurrencies, including Bitcoin (BTC), XRP, and Dogecoin (DOGE), rose following comments from U.S. Treasury Secretary Scott Bessent hinting at potential trade deals before the July 9 tariff deadline, as reported by Reuters. Specifically, Bitcoin briefly surpassed $109,000, while XRP gained over 2% and DOGE increased by 3%, signaling positive sentiment driven by geopolitical developments.

According to @Andre_Dragosch, the weakening U.S. dollar, which has fallen to a three-year low against major currencies, is creating a significant opportunity for euro-pegged stablecoins. The analysis suggests that unpredictable U.S. policy has pushed global central bankers to diversify reserves into the euro, gold, and renminbi, a trend expected to spill over into DeFi (source: Reuters, via author). This shift is amplified by the European Union's pro-crypto stance, solidified by the MiCA framework, which provides regulatory clarity and allows issuers to get licensed. This gives MiCA-compliant stablecoins like EURC a competitive advantage over non-compliant ones such as Tether (USDT), which currently dominates nearly 70% of the market (source: @Andre_Dragosch). As major exchanges like Coinbase and OKX secure EU approval and the euro strengthens, the author predicts a substantial increase in the market share of EUR-pegged stablecoins by 2028, potentially threatening the long-held dominance of their USD counterparts.

According to @doctortraderr, Tether's (USDT) market dominance is facing a two-front challenge from regulation and market dynamics. The proposed U.S. 'GENIUS Act' could force Tether to either undergo significant compliance changes to operate in the U.S. or cede market share to compliant competitors like Circle's USDC. The legislation demands strict reserve standards, such as 1:1 backing with cash and Treasuries, and frequent audits, which Tether currently does not meet. Concurrently, a weakening U.S. dollar and the E.U.'s crypto-friendly MiCA framework are creating a favorable environment for EUR-pegged stablecoins. Since Tether is not MiCA-compliant, this could allow alternatives like EURC to gain traction in the European market. The author predicts that these pressures, combined with a broader bearish trend in the crypto market where assets like Bitcoin (BTC) and Ethereum (ETH) are down, could significantly erode USDT's long-standing leadership in the stablecoin space.