Between 2023 and 2025, stablecoin issuers took strikingly different approaches to asset control. Tether froze approximately $3.3 billion in crypto assets during this period, while Circle, the issuer behind USDC, froze just $109 million—marking roughly a 30-fold difference in freeze activity.

Tether's enforcement strategy proved more aggressive. The company blacklisted 7,268 addresses, often coordinating directly with U.S. law enforcement agencies. The process typically followed a consistent pattern: freeze the assets, burn them from circulation, then reissue new tokens. Notably, over half of all frozen USDT holdings resided on the Tron blockchain, reflecting concentration risks on that chain.

Circle adopted a contrasting stance—implementing stricter gatekeeping measures from the ground up rather than relying heavily on post-issuance freezing mechanisms. This difference reveals competing philosophies within stablecoin governance: proactive compliance architecture versus reactive enforcement mechanisms. For traders and institutions navigating the stablecoin landscape, understanding these distinctions matters when evaluating counterparty risk and regulatory exposure.