#StablecoinLaw Stablecoin Demand Set to Soar into the Trillions, According to U.S. Treasury Official 🚀

Overview

During recent testimony, U.S. Treasury Deputy Secretary Michael Faulkender projected that institutional demand for USD‑pegged stablecoins could reach trillions of dollars, driven by new regulations and growing digital asset adoption .

Why This Matters

Under the GENIUS Act, stablecoin issuers must back tokens 1:1 with liquid assets—primarily short-term U.S. Treasury bills—leading to a potential $2 trillion+ demand for these securities over the next few years .

Treasury Secretary Scott Bessent echoed this outlook, estimating a $2 trillion demand surge and noting stablecoins could account for 7× more transactions, rivaling FX volumes and supporting dollar dominance .