Catenaa, Friday, June 13, 2025- US Treasury Secretary Scott Bessent told a Senate hearing Wednesday that the US dollar-backed stablecoin market has the potential to exceed $2 trillion within three years, contingent on supportive legislation.
Bessent referenced estimates from the Senate Appropriations Committee, which forecast the GENIUS Act could expand the stablecoin market to that size by the end of 2028.
The legislation, recently advanced by the Senate, mandates stablecoins be fully backed by US dollars or liquid assets such as Treasury bills and requires annual audits for issuers exceeding $50 billion in market capitalization.
The GENIUS Act is supported by President Donald Trump, who aims to sign the bill into law before August. Bessent emphasized the legislation’s role in reinforcing the dollar’s status as the global reserve currency amid past challenges.
Currently, US dollar-linked stablecoins account for $246.9 billion, representing over 96% of the total stablecoin market.
The sector has seen momentum with banks like Bank of America preparing their own stablecoins and Circle’s recent public listing, which saw its stock surge 235% on debut.
The bill’s progress signals growing regulatory clarity for stablecoins, seen as key to the future of digital payments and the broader digital economy.
