Circle's USDC has surpassed Tether's USDT in onchain activity, according to a report by JPMorgan. The shift is driven by increased demand for stablecoins that comply with emerging regulatory standards. USDC's market capitalization has surged 72% this year to $74 billion, significantly outpacing USDT's 32% growth. This trend is largely attributed to the regulatory clarity provided by Europe's MiCA framework, which became effective in mid-2024. USDC's compliance, transparent reserves, and regular audits have enhanced its attractiveness to institutional investors, while USDT's lack of MiCA authorization has resulted in its removal from several European exchanges.