The Binance BNB Chain saw a significant surge in its stablecoin market capitalization, increasing by 30% in the past week. This growth, reaching $9.26 billion, was fueled by the introduction of USD1, a dollar-pegged stablecoin issued by World Liberty Financial, which added over $2 billion in value. This expansion highlights the increasing adoption and activity within the BNB Chain ecosystem.

The SEC has concluded its investigation into PayPal’s PYUSD stablecoin, deciding against enforcement action. This outcome, revealed in PayPal’s Q1 2025 financial report, resolves a subpoena issued in November 2023 and alleviates regulatory concerns surrounding the dollar-backed cryptocurrency. This positive development removes a significant hurdle for PYUSD’s market presence.

The article analyzes the factors behind Bitcoin’s recent price increase. It highlights that while demand from Bitcoin ETFs is a significant driver, stablecoin buying power remains low. The Exchange Stablecoins Ratio (ESR) and Stablecoin Supply Ratio (SSR) are used to gauge Bitcoin’s liquidity and potential buying strength. A low ESR suggests limited immediate buying power, whereas a high one shows available capital.

The US government, under the current administration, is aiming to finalize legislation concerning stablecoins and the overall crypto market structure by August 2025. Bo Hines, executive director of the President’s Council of Advisors on Digital Assets, revealed a three-phase policy roadmap and discussed strategic initiatives in a recent interview. The goal is to provide regulatory clarity and framework for digital assets.

The USD1 stablecoin, backed by World Liberty Financial and associated with a well-known family, has exceeded a $1 billion market capitalization on the BNB Chain. This achievement follows a surge in minting activity, making USD1 one of the fastest-growing decentralized stablecoins. This milestone highlights the growing adoption and influence of stablecoins within the cryptocurrency landscape.