The stablecoin market capitalization has reached $323.112 billion, with Tether (USDT) dominating at 58.69% of the total. Despite USDT's $5 billion increase over the past month, the overall growth of the stablecoin market has slowed. This deceleration is attributed to a $4.2 billion decline in the combined supply of USDC, USDe, and PYUSD. Ethena USDe experienced a significant supply drop of 28% over the month, contributing to the market's slowed growth. Meanwhile, smaller stablecoin initiatives like USDS and USD1 saw moderate inflows as users sought alternative yield opportunities. PayPal USD continued to lose ground, with a 13% supply decrease, highlighting challenges in adoption despite PayPal's backing. The Senate Banking Committee's recent passage of the CLARITY Act has not alleviated concerns over stablecoins, particularly regarding "yield-bearing" models that could disrupt traditional banking. JPMorgan Chase CFO Jeremy Barnum has cautioned against allowing stablecoins to offer yields, suggesting regulatory hurdles remain for broader adoption.