In a striking revelation that challenges long-held perceptions, TRM Labs, a leading blockchain intelligence firm, has reported that 99% of all stablecoin transactions in 2024 are entirely legal. This finding highlights the growing legitimacy of digital assets and helps dismantle the widely held belief that cryptocurrencies, especially stablecoins, are predominantly used for illicit activities.
A Shift in the Narrative Around Crypto
For years, critics and regulators have viewed cryptocurrencies with suspicion, often associating them with money laundering, terrorist financing, and other illegal uses. Stablecoins—cryptocurrencies pegged to the value of fiat currencies like the U.S. dollar—have come under particular scrutiny due to their rapid growth and widespread usage.
However, TRM Labs' 2024 "State of Financial Crime" report offers a drastically different picture. According to the report, only 1% of stablecoin transactions show any connection to illicit activity, and even those are largely isolated cases tied to scams or sanctioned entities.
Why Are Stablecoins Gaining Trust?
Stablecoins like USDT (Tether), USDC (USD Coin), and DAI have become essential tools in both retail and institutional finance. Their price stability, instant transfer capabilities, and low transaction costs make them ideal for cross-border payments, remittances, and decentralized finance (DeFi) operations.
TRM Labs attributes the high level of legality in stablecoin usage to:
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Improved on-chain transparency
All blockchain-based transactions are traceable. Law enforcement and compliance teams now have tools to detect suspicious activity more effectively than in the traditional banking system. -
Regulatory compliance by issuers
Major stablecoin issuers have implemented Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols, limiting the misuse of their platforms. -
Increased adoption by regulated financial institutions
Banks and payment companies are beginning to integrate stablecoins into their operations, further increasing trust in their use.
TRM Labs: “Crypto Isn’t a Safe Haven for Criminals”
In a public statement, TRM Labs emphasized that the narrative of crypto being a haven for criminals is outdated. The firm works closely with law enforcement agencies around the world, providing data that helps track and prevent financial crimes on the blockchain.
“Crypto is one of the most transparent financial systems ever created,” the report noted. “Illicit actors leave digital footprints that can be traced back faster than in traditional finance.”
In contrast, traditional financial systems still account for the majority of global money laundering. The United Nations Office on Drugs and Crime estimates that up to $2 trillion is laundered annually through traditional channels—far surpassing anything seen in the crypto sector.
What This Means for the Future of Stablecoins
This report marks a major milestone in the legitimization of stablecoins. As regulators worldwide continue to draft frameworks to govern digital assets, TRM Labs' findings could pave the way for more balanced policies that encourage innovation while ensuring safety.
Institutional investors, fintech startups, and even central banks may now feel more confident in embracing stablecoin technology as a secure and compliant financial instrument.
Conclusion
The 2024 findings by TRM Labs represent a significant turning point in how stablecoins and the broader crypto ecosystem are perceived. With 99% of stablecoin transactions being legal, the data strongly counters the myth that crypto is inherently risky or criminal. Instead, it positions blockchain-based finance as transparent, secure, and increasingly integral to the global economy.
As the industry matures, continued collaboration between regulators, innovators, and intelligence firms like TRM Labs will be key to maintaining this positive trajectory.