The narrative that Bitcoin is the currency of choice for criminals is looking increasingly outdated. River, the Bitcoin-centric financial services company, posted on May 31 that criminals now prefer stablecoins over Bitcoin, a claim backed by data from blockchain analytics firms that paints a picture of a dramatic reversal in how digital assets are used for illicit purposes.

Bitcoin’s share of illicit transaction volume has cratered from around 70% in 2020 to approximately 7% by 2025, according to Chainalysis data. In that same period, stablecoins surged to account for roughly 84% of illicit transaction volumes.

Stablecoins like USDT solve the volatility problem neatly. They’re pegged to the US dollar, meaning a…