The U.S. government seems to be warming up to stablecoins, and not just as a regulatory headache. In a recent Senate hearing, Treasury Secretary Scott Bessent gave an optimistic nod to a $2 trillion stablecoin market by the end of 2028, even suggesting that the figure might be underselling where things are headed.
Crazy right?
His comments come as lawmakers continue to push the GENIUS Act, a major piece of legislation that could finally draw the lines around how stablecoins should operate in the U.S.
Legislation could be the boost stablecoins have been waiting for
During the hearing, Bessent responded to a Senate Appropriations Committee member’s projection that the GENIUS Act would help the U.S. dollar-backed stablecoin market hit $2 trillion in the next three years.
“I think that $2 trillion is a very reasonable number, and I could see it greatly exceeding that,” Bessent said. He added that stablecoin legislation mandating backing by U.S. Treasuries or T-bills could supercharge the dollar’s reach globally, positioning stablecoins as an extension of the greenback’s power.
The GENIUS Act, which advanced in the Senate earlier that day, would require all stablecoins to be fully collateralized by dollars or similarly liquid assets.
Issuers with more than $50 billion in circulation would face mandatory annual audits. There’s also language that addresses stablecoin issuance by foreign entities, hinting at a broader global reach, and oversight.
From Washington to Wall Street, stablecoins Are gaining momentum
The total market cap of U.S. dollar-linked stablecoins currently sits at over $240 billion, making up over 96% of the global stablecoin market. That number could shift quickly if the GENIUS Act passes, with traditional finance institutions already preparing for what’s next.
Earlier this month, Circle, issuer of USDC, went public and saw its shares surge by more than 200% on day one. Bank of America is also reportedly building out its own stablecoin offering.
President Trump has expressed his intent to sign the GENIUS Act into law before August, a move that would mark a major milestone for crypto regulation in the U.S.
As Bessent noted during the hearing, every time the dollar’s dominance has been questioned in history, a new tool has stepped in to strengthen it. This time, that tool might just be stablecoins.
