New stablecoin rules from major jurisdictions, particularly the U.S., are reshaping the global digital asset market and presenting significant challenges for Tether’s USDT, the largest stablecoin with a market capitalization of over $160 billion.

A recent research report from Zhou Hao, the Chief Economist at Guotai Junan International, a multi-billion-dollar financial services firm, suggests that Tether may face a “severe challenge” as the U.S. moves toward a compliant stablecoin regulatory framework.

Zhou claims that Tether’s market share and influence “will inevitably be eroded by compliant stablecoins,” according to a translation from the Chinese version.

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