US Treasury Secretary Predicts Stablecoin Market to Reach $2Trillion
Key Highlights
* Stablecoins could surpass $2 trillion in market capitalization by 2028.
* The GENIUS Act aims to introduce strict regulations for stablecoin issuers.
* US dollar-backed stablecoins may reinforce the dollar’s global position.
The US Treasury Secretary, Scott Bessent, has projected that the stablecoin market could exceed $2 trillion in the coming years. His statement comes as the GENIUS Act advances in the Senate, aiming to regulate stablecoin issuers and ensure financial stability.
Regulatory Push for Stablecoins
The GENIUS Act, which has gained bipartisan support, mandates that US dollars or liquid assets fully back stablecoins
It also requires annual audits for issuers with a market cap exceeding $50 billion. This move is expected to boost institutional adoption and strengthen the US dollar’s role in global finance.
Impact on the Crypto Market
With stablecoins becoming more integrated into traditional finance, experts believe this regulation could increase trust and adoption. The Treasury Secretary emphasized that stablecoins backed by US treasuries will be a pillar of dollar strength. This reinforced its dominance in cross-border trade and decentralized finance.
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