Circle said its USDC stablecoin circulation rose 12% this week, reflecting stronger demand from institutions as the U.S. moves toward clearer rules for digital dollar tokens. The increase comes as market participants look for more certainty around how stablecoins will be regulated.

According to the company, the pickup in circulation suggests that investors and financial firms are positioning for a more defined legal framework. Stablecoin issuers have been pressing Washington for guidance, arguing that clearer standards could support wider use in payments, trading, and treasury operations.

USDC is one of the largest dollar-backed stablecoins and is designed to maintain a 1:1 value with the U.S. dollar. Its growth has often been tied to shifts in crypto market activity, but regulatory expectations are now playing a bigger role in adoption.

The latest increase underscores how policy developments in the United States can shape the digital asset market. Industry observers say final legislation could determine which issuers gain the strongest footing in a sector still defined by uncertainty.