Recent shifts in U.S. regulatory policy have sparked optimism for a stablecoin boom

Recent shifts in U.S. regulatory policy under President Donald Trump have sparked optimism for a stablecoin boom, yet major players like PayPal's PYUSD PYUSD/USD and Ripple's RLUSD RLUSD/USD are struggling to capitalize on the favorable climate.

Recent shifts in U.S. regulatory policy under President Donald Trump have sparked optimism for a stablecoin boom, yet major players like PayPal's PYUSD PYUSD/USD and Ripple's RLUSD RLUSD/USD are struggling to capitalize on the favorable climate.

Despite a supportive Securities and Exchange Commission, a pro-crypto Commerce Secretary and the rollback of restrictive banking rules by the Office of the Comptroller of the Currency, these American-backed digital currencies have failed to dent the dominance of established rivals like Tether's USDT USDT/USD and Maker's DAI DAI/USD.

Financial experts had anticipated a "stablecoin gold rush," but the market has so far rebuffed these newcomers.

Ripple introduced RLUSD in December, branding it as a top-tier option for businesses using its XRP XRP/USD Ledger platform.

However, nearly three months later, the stablecoin has captured less than 0.7% of the market, falling short of expectations.

Early volatility raised eyebrows when RLUSD briefly deviated from its intended $1 peg, though it has since stabilized.

Meanwhile, PayPal's PYUSD, rolled out with integrations across its ecosystem and select external services, has also faltered.

Also Read: Bitcoin’s Heading To $73,000 Without A Fresh Narrative: 10x Research

Even with PayPal's robust infrastructure and commitment to the project, the coin has gained little traction among users.

The regulatory landscape couldn't be more inviting, with Trump's administration championing domestic cryptocurrency innovation.

Yet, entrenched competitors—many operating from offshore bases—continue to reign supreme.

Tether's USDT, alongside alternatives like Sky's USDS and Ethena's USDE maintain a firm grip on the stablecoin sector, leaving PYUSD and RLUSD as minor players.

Analysts note that while the political environment aligns perfectly for growth, market dynamics and user preference for established options have stifled these new entrants' progress.

PayPal remains undeterred, shrugging off concerns tied to a past subpoena from the Biden era and focusing on expanding PYUSD's reach.

Ripple, too, persists with RLUSD, banking on its enterprise appeal.

Still, the lackluster performance of both coins underscores a disconnect between regulatory enthusiasm and real-world adoption, casting doubt on how quickly Trump's crypto-friendly policies can reshape the stablecoin landscape.

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