Stablecoin Censorship Powers Raise Concerns
Stablecoin Censorship Powers Raise Concerns
馃敀 Your Money, Their Control?
By Ampleforth
May 26, 2025, 4:14 PM
Photo by Ampleforth
Major stablecoin issuers continue to exercise significant control over user funds:
- Circle has blacklisted over $100M in USDC across 275+ addresses
- Tether has frozen more than $500M to date
- Recent actions include freezing 32 addresses linked to conflict zones
The SPOT protocol offers an alternative approach:
- No admin keys or pause functions
- Cannot be censored or reversed
- No personal information required
- Immune to regulatory intervention
Key Insight: While major stablecoins maintain deliberate control mechanisms, censorship resistance emerges as a crucial feature for trust-minimized financial systems.
Most stablecoins can be paused. Circle has blacklisted nearly $100M in USDC across 275+ addresses, and Tether has frozen more than $500M to date. Ethena鈥檚 reliance on centralized exchanges introduces a single point of regulatory failure. It only takes one phone call. These
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