That is an interesting thought. I would think that to eat Tether's lunch, they need to a) be as lightly regulated as Tether or b) increase regulation so that Tether is less useful.

In the US, they've probably already achieved this. USDT isn't issued here and USAT (Tether's GENIUS-compliant offering) is not exactly conquering the field.

USDC is pretty dominant in the US, so that does make sense. Would a stablecoin hooked up to Visa and Mastercard do better than USDC? I think it probably would. That does make the whole thing make more sense.