The crypto industry is on the cusp of significant transformation amid stringent regulations. A novel class of stablecoins is set to revolutionize the crypto industry: "dark stablecoins."

CryptoQuant CEO Ki Young Ju believes a new class of stablecoins—which we can term “dark stablecoins”—are likely to emerge in the future.

These would be censorship-resistant coins that no government can control, says Ju. His thoughts come as global governments are increasing financial regulations, especially over stablecoins.

What Are Dark Stablecoins, CryptoQuant CEO Explains

“As governments get greedy and try to control more, I think a novel class of stablecoins will likely emerge in the future: ‘dark stablecoins’,” Ju stated.

“They are stablecoins that no government can control, and they are made to be completely censorship-resistant.”

The crypto industry figure highlighted this idea amid the increasing scrutiny over stablecoins from global governments. It is noteworthy that Ju’s novel notion comes following Meta's decision to focus on stablecoin payment solutions.

Moreover, Ju explained two ways in which these dark stablecoins could be made. One way, he said, is by simply “making them decentralized.”

The second way, according to Ju, would be through an existing stablecoin issuer like Tether choosing to disregard government regulations.

“For example, if the next US administration becomes hostile to crypto again and tries to freeze Tether's US dollar deposits to cut off Tether's liquidity, Tether could decide not to cooperate and remain defiant.”

Why are Decentralized Stable Tokens Important?

Unlike decentralized cryptocurrencies like Bitcoin, stablecoins are always tied to a central authority, which is usually the issuer of the token, like Tether or Circle. These authorities help to maintain the value of these tokens by backing them with real-world assets such as fiat currencies.

While governments have historically kept their involvement in stablecoin regulation minimal, this landscape is quickly changing.

As these decentralized stable assets have become more popular due to their relative lack of oversight, governments are now preparing to impose stricter regulations. For instance, the US Senate failed to advance the landmark GENIUS Act despite the crypto industry’s support.

These new regulations could include anything from automatic tax collection via smart contracts to wallet freezes or mandatory paperwork, ultimately limiting the freedom to transfer funds.

However, the emergence of dark stablecoins would help users to keep their assets safe from government interference, freezing, and other forms of financial censorship.

Moreover, the CryptoQuant CEO offered a unique perspective in his tweet. He posited that Tether’s USDT, once regarded as a censorship-resistant token, could reclaim its status as a ‘dark stablecoin’ if Tether opts to defy US government regulations under a potential future administration.