Because the cryptocurrency market enters 2026, one theme has turn into more and more clear. It has been much less about hypothesis and extra about infrastructure, regulation and real-world utilization final yr. Throughout jurisdictions, regulators and establishments have moved from principle to implementation, reshaping the best way digital belongings are overseen and used.
This transformation was characterised by the rise of stablecoins. Whereas Bitcoin (BTC) continues to dominate the cryptocurrency market capitalization, stablecoins now account for greater than half of the world’s on-chain transaction quantity. Their rising position in funds, remittances and transactions has put them within the highlight of regulatory consideration, particularly as governments grapple with monetary stability and compliance dangers.
On this week’s episode of Bytesize Insights, Cointelegraph explores how these adjustments have performed out in follow, with insights from Mathias Bauer Langertner, Head of European Coverage at Chainalysis.
Stablecoins will not be a bystander
“2025 was the yr of stablecoins,” mentioned Bauer Langertner.
He started by emphasizing that that is nothing new, as their benefit has been constructing for years. In keeping with Chainalysis knowledge, stablecoins at present “clearly dominate the crypto world with greater than 50% of buying and selling quantity,” regardless that Bitcoin holds about half of the whole market capitalization.
This progress has made stablecoins enticing for each authorized and illicit use circumstances.
“Stablecoins have [also] It has already dominated the buying and selling quantity of crypto belongings for fairly a while, each in unlawful and authorized use. ”
He added that criminals like stablecoins as a result of they’re liquid, globally accessible, and keep away from volatility. But the identical construction creates coercion.
“Centralized stablecoin issuers usually have the flexibility to freeze and even burn stablecoins,” he mentioned, calling this “a really highly effective software to struggle monetary crime.”
Cryptocurrency crime turns into geopolitical
2025 was marked not solely by particular person fraud and hacking, but in addition by a shift in the direction of state-related cryptocurrency exercise.
“2025 was, in lots of circumstances, a file yr for crypto crime,” Bauerlangertner mentioned. Chainalysis recorded $154 billion in illicit cryptocurrency flows, a rise of 162% yr over yr.
Associated: Tether’s position in Venezuela and Iran highlights the twin nature of stablecoins
A lot of that progress was pushed by nation-state actors, he mentioned.
“State actors are facilitating using cryptocurrencies for unlawful actions at a really skilled degree.”
On this episode, he additionally detailed particular sanctioned stablecoins and state-backed networks used to evade sanctions.
Bauerlangertner mentioned that regardless of the surge, criminal activity stays a small portion of total utilization. “If we have seen a rise thus far, it is lower than 1% of total exercise,” he mentioned, highlighting the challenges regulators face as adoption accelerates.
He additionally highlighted the continuing implementation of crypto asset market regulation in Europe and the way it’s shaping up with different international frameworks, making a extra structured business.
Hearken to the complete episode on Cointelegraph’s podcast web page. apple podcast or spotify. Don’t overlook to take a look at Cointelegraph’s complete lineup of different reveals!
journal: How will cryptocurrency legislation change in 2025 and the way will it change in 2026?
