According to the latest statistics shared by Delphi Digital, the total supply of stablecoins has exceeded $250 billion for the first time. Profitable stablecoins are rapidly expanding, with Ethena alone reaching nearly $6 billion since its launch.
Tether's USDT and Circle's USDC continue to dominate this space, together accounting for 86% of the circulating supply. However, the diversity of issuers is increasing, with over 10 stablecoins now in circulation exceeding $100 million. More than $120 billion in U.S. Treasury bonds are now held in stablecoins.
The Forces Behind the $250 Billion Stablecoin Boom
It is important to note that the market has recovered significantly after major disruptions over the past four years, including the collapse of Terra (UST) in May 2022, which caused a loss of trust in algorithmic stablecoins, and the devaluation of USDC in March 2023 due to the regional banking crisis and Circle's $3.3 billion investment in SVB.
Recent growth may be due to the broader recovery of the digital asset market, the launch of spot cryptocurrency ETFs listed in the U.S. in 2024, and a shift in sentiment under the Trump administration, which has increased interest from institutions and the adoption of digital assets.
As the stablecoin market continues to grow and gain momentum, policymakers are introducing new laws to bolster the U.S.'s leading position in the digital finance sector.
The GENIUS Act Progress
After the Senate passed the GENIUS Act with a vote of 68-30, U.S. President Donald Trump urged the House of Representatives to act quickly to pass the legislation. The Act aims to Guide and Establish National Innovation for U.S. Stablecoin. On Truth Social, Trump stated that the bill would make the U.S. the "undisputed leader in digital assets" and urged lawmakers to avoid delays or amendments.
The bill's sponsor, Senator Bill Hagerty, had previously emphasized the bill's potential to accelerate nationwide payment processing. The House, controlled by the Republican party, is now expected to vote.
Criticism of the GENIUS Act has become sharp in some places, particularly from Democratic lawmakers concerned about conflicts of interest. The bill was initially stalled in May, failing to pass a procedural vote amid concerns about Trump’s cryptocurrency ties.
Senator Elizabeth Warren has claimed that this law could help Trump and his family earn "hundreds of millions" through their stablecoin USD1. Meanwhile, Senator Mark Warner expressed ethical concerns, warning that continued inaction would cause the U.S. to fall behind.
