Circle, a significant player in the stablecoin market, has ceased minting its USDC stablecoin on the Tron blockchain.

The company's action stems from legal hurdles faced by Tron's founder, Justin Sun, prompting a 'phased transition' for risk mitigation.

Circle's strategic move is indicative of the wider crypto industry's efforts to maintain compliance and distance from networks with potential regulatory issues.

This shift may also be influenced by Circle's competition with USDT, as the firm seeks to bolster its market position and uphold its reputation.

Previously, Circle had also taken measures against Justin Sun's accounts due to alleged connections with illicit activities, underscoring its commitment to regulatory adherence.

Affected Circle Mint customers will have options to transfer their USDC tokens to alternative networks or convert them to fiat currency.