Tornado Cash ban in the United States brings news of its repercussions every now and then. Out of these, some are factful instances while others are just wild guesses. Amidst this chaotic situation, crypto users draw attention towards the stablecoin sector, especially at top positions. USDT and USDC market caps experienced some changes following the privacy protocol ban, but the changes are different.
The market capitalization of the second biggest stablecoin in the cryptomarket reduced by nearly 2 billion USD. About a month ago, USDC possessed around 55 billion USD, which dropped to approx 53 billion USD. Currently, the overall market cap of USDC is 53,161,027,605 USD.
On the other hand, top stablecoin USDT reported to rise in terms of market capitalization. Citing this instance, many members of the crypto community went on to Twitter. Various social media users brought different perspectives and tried to figure out the instance increase of USDT market cap and USDC market cap decline.
Twitter Users on Potential USDC-USDT Flipping
For instance, one Twitter user implied that in the wake of the Tornado Cash ban, USDC users shifted 1.6 billion worth of funds to USDT. Bitfinex and Tether Chief Technology Officer, Paolo Ardoino also registered his opinion on the situation of USDC and USDT.
Ardonio said on Twitter that both the stablecoins are able to use Ethereum smart contract functionality and freeze the funds. However, only Circle announced the freezing of assets.
USDC Facing Tornado Cash Sanction Repercussions
The United States Treasury Department prohibited the US users from using the Tornado Cash platform. The authorities put 44 USDC associated wallet addresses in the specially Designated National (SDN) list. Technically, the agency ordered them to block these accounts.
Isser of USDC stablecoin, Circle followed the obligations of the agency and blocked the mentioned 44 addresses. Additionally, the company went on to freeze 75K worth USDC that were in connection with the blacklisted accounts.
Source: https://www.thecoinrepublic.com/2022/08/18/tornado-cash-ban-impact-on-usdc-and-usdt/