Legislative Clarity May Supercharge USD-Backed Stablecoin Growth
The U.S. dollar-backed stablecoin market is poised to undergo massive growth, with Treasury Secretary Scott Bessent projecting that the market could exceed $2 trillion by 2028 — if regulatory support through legislation like the GENIUS Act is enacted.
“I believe that $2 trillion is a very reasonable number, and I could see it greatly exceeding that,” Bessent told the Senate Appropriations Committee.
GENIUS Act Gains Momentum in the Senate
On Wednesday, the U.S. Senate voted to advance the GENIUS stablecoin bill, moving it closer to final approval. The legislation would:
- Require full reserves (USD or U.S. Treasuries) for all issued stablecoins
- Enforce annual audits for issuers with over $50 billion in market cap
- Include rules addressing foreign issuance of stablecoins
The GENIUS Act is seen as a pivotal framework to legitimize and expand the USD’s role in the digital economy.
President Donald Trump has thrown his support behind the bill, stating that he aims to sign it before August, reinforcing his administration’s focus on strengthening the dollar’s dominance through digital assets.
Stablecoins to Fortify USD’s Global Role
Bessent emphasized the strategic importance of stablecoins:
“Stablecoin legislation backed by U.S. Treasuries will expand U.S. dollar usage around the world.”
Currently, USD-linked stablecoins command a market cap of $246.9 billion, accounting for over 96% of the global stablecoin market. The GENIUS Act is expected to bolster the U.S. dollar’s reserve currency status by integrating stablecoins into the global financial infrastructure.
Major Financial Institutions Enter the Space
Amid the regulatory clarity provided by the GENIUS Act:
- Bank of America is reportedly preparing to launch its own stablecoin
- Circle, issuer of USDC, went public this month and saw its stock jump 235% on debut
The growing interest from traditional financial giants signals mainstream adoption of stablecoins as part of the evolving financial ecosystem.
Summary: The U.S. stablecoin market, currently valued at $246.9 billion, could surpass $2 trillion by 2028 if the GENIUS Act passes. Backed by bipartisan momentum and institutional interest, USD stablecoins are set to play a central role in maintaining the dollar’s global dominance in the age of digital finance.