Stablecoin Market Drops Record $7.7 Billion Amid GENIUS Act Shift

The stablecoin market experienced its largest monthly decline in four years in June 2026, with a drop of $7.7 billion, according to KuCoin.

This marked the steepest monthly decline since the Terra collapse in 2022, while adjusted trading volume surged to an all-time high of $1.79 trillion.

The GENIUS Act's restriction on interest payments for holding payment stablecoins led to a shift in capital allocation, with holders moving their idle balances into tokenized U.S. Treasury funds that offer yields near 4 percent.

Tether's USDT and Circle's USDC were the most affected assets, with USDT falling from $190 billion to $184 billion and USDC declining from near $80 billion levels to around $74 billion.