The US dollar – backed stablecoin market has the potential to exceed $2 trillion by the end of 2028, according to US Treasury Secretary Scott Bessent. He made the remarks at a Senate hearing on Wednesday, affirming an estimate related to the Genius Act.
The Genius Act, which is advancing in the Senate, aims to regulate and expand the US stablecoin ecosystem. It requires stablecoins to be fully backed by US dollars or similar liquid assets and mandates annual audits for issuers with a market capitalization exceeding $50 billion. Bessent believes that stablecoin legislation backed by US treasuries or T – bills will create a market that can expand the global usage of the US dollar through these stablecoins. He described the $2 – trillion projection as very reasonable and thought it could be greatly exceeded.
Currently, US – dollar – linked stablecoins have a total market capitalization of approximately $247 billion, accounting for over 96% of the entire global stablecoin market. With the progress of the Genius Act, there have been many developments in the US stablecoin space. For example, major banks like Bank of America are preparing to launch their own stablecoins, and Circle, the issuer of USDC, went public earlier this month, with its stock surging 235% on the first day of trading.
President Donald Trump supports the advancement of stablecoin legislation and hopes to sign the bill before August. This aligns with the administration’s goal of strengthening the US dollar’s status as the dominant reserve currency, especially in the face of rising geopolitical competition and emerging alternatives to the US dollar.
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