Up to 99% of stablecoin activity in 2024 was legal

TRM Labs released its 2025 crypto crime report, revealing that crypto-related criminal activities have reduced by 24% since 2023. 

While the cryptocurrency industry is awaiting regulatory clarity, the blockchain intelligence firm, TRM Labs, has released its yearly crypto crime report.

Most of stablecoin activity is in the legal arena

TRM Labs, the blockchain intelligence firm, has reported that 99% of all stablecoin activity in 2024 was legal and compliant with regulations.

The firm’s latest Crypto Crime Report, released on Tuesday, June 17, shows the evolving role of fiat-pegged tokens in the global financial space. The report says that over 60% of all crypto transaction volume in 2024 was conducted using stablecoins.

“The fact that such a large percentage of stablecoin activity is legal—despite the high transaction volume—suggests that fears about crypto’s criminal utility may be overblown,” the report concluded.

Stablecoins operate on public blockchains that allow transactions to be tracked with a high degree of precision through the use of blockchain analytics. According to TRM Labs, this traceability makes stablecoins more transparent than physical cash, and in some ways even more controllable.

For example, issuers of centralized fiat-pegged tokens like USDT (Tether) or USDC (Circle) can freeze or even burn tokens that are linked to illicit activity.

“One of their defining features is traceability. In addition to traceability, stablecoin issuers retain the ability to ‘freeze’ or ‘burn’ illicit proceeds.” The report read

This capability has made stablecoins a preferred tool for regulatory compliance in the crypto space.

The research firm, Artimas, reported that business-to-business (B2B) stablecoin transfers now represent the largest and fastest-growing category of transaction volume, outpacing peer-to-peer (P2P) transactions.

Despite this, according to TRM Labs’ data, stablecoins accounted for 60% of the crypto-based illicit transaction volume in 2024. Much of this was concentrated in areas such as terrorist financing, fraud, and ransomware payments. The report mentions a subsidiary of ISIS called Islamic State Khurasan Province (ISKP) that has carried out its activities with financing from crypto platforms.

There were 5,635 publicly reported ransomware attacks. The report also mentions a record $75M ransom payment made to the Dark Angels Ransomware group in March of 2024.

TRM Labs estimates that illicit activity across the crypto space dropped by 24% year-over-year in 2024, totaling $45B which represents 0.4% of the overall crypto transaction volume. The firm attributes this reduction in illegal activities to the enhanced law enforcement efforts, increased industry cooperation, and the growing adoption of analytics tools.

TRM Labs itself is contributing to the reduction in crime through its involvement in the T3 Financial Crime Unit (T3 FCU), a multi-stakeholder partnership that includes the stablecoin issuer Tether and TRON, the blockchain most commonly used for USDT transactions.

Stablecoin legislation is moving through the U.S. Senate

A wide-ranging piece of legislation aimed at establishing a comprehensive regulatory framework for stablecoins in the United States, known as the GENIUS Act, is headed to the Senate, where it is expected to pass.

The legislation is being pushed by bipartisan lawmakers and is also supported by President Donald Trump. The bill, if enacted, would introduce a licensing regime for issuers, reserve requirements to ensure that stablecoins are fully backed, mandatory audits to maintain transparency, consumer protection laws, and anti-money laundering (AML) obligations.

According to TRM Labs, this proposed law “marks a clear turning point in U.S. digital asset policy.” The firm believes that such clarity could accelerate stablecoin adoption among large banks, financial institutions, and corporations. Many of these institutions are already experimenting with or utilizing stablecoin infrastructure for purposes like cross-border payments, supply chain management, and programmable finance.

For businesses, this legal clarity would simplify cross-border trade and reduce their reliance on slower, expensive systems.

“This legislation could help build guardrails while promoting innovation,” TRM Labs added. “It addresses the major gaps in accountability that have long plagued the space.”

The GENIUS Act is viewed as a sister bill to the STABLE Act, which is another legislative initiative focused on bringing stablecoins under the range of federal banking laws. Together, these bills could usher in an era where blockchain technology and traditional financial systems exist under a common regulatory umbrella.

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