• The US stablecoins market represents 96% of the worldwide $247 billion market.
• The GENIUS Act cleared a key hurdle this week after passing a cloture vote within the US Senate.
• Bessent advised senators that stablecoins signify a “new mechanism” to bolster the US greenback’s international place.

The US stablecoin market is heading for a regulatory overhaul that would drive its market dimension to greater than $2 trillion by 2028, in line with Treasury Secretary Scott Bessent.

His feedback got here throughout a Senate listening to on Wednesday as lawmakers superior the bipartisan GENIUS Act, geared toward introducing strict guardrails for stablecoin issuers.

Bessent acknowledged that regulation tied to US treasuries might considerably enhance international utilization of dollar-backed stablecoins and keep American financial management in an more and more decentralised monetary system.

GENIUS Act beneficial properties momentum in Senate

The GENIUS Act cleared a key hurdle this week after passing a cloture vote within the US Senate, signalling broad political help for introducing federal oversight of stablecoins.

The laws, seen as pivotal in anchoring stablecoins to the present monetary framework, mandates full backing by US {dollars} or equally liquid belongings.

It additionally imposes annual audits for issuers whose market capitalisation exceeds $50 billion.

The invoice comprises particular clauses to supervise the actions of foreign-issued stablecoins throughout the US, underscoring considerations about financial sovereignty and potential publicity to systemic dangers.

It comes at a time when the US stablecoin market, valued at roughly $247 billion, accounts for over 96% of the worldwide whole.

President Donald Trump has reportedly endorsed the invoice and is pushing to have it signed into legislation earlier than the summer season recess.

This aligns with the administration’s broader goal to safe the greenback’s position because the dominant reserve forex, significantly within the face of rising geopolitical competitors and rising alternate options to the dollar.

Treasury predicts long-term affect on greenback utilization

Bessent advised senators that stablecoins signify a “new mechanism” to bolster the US greenback’s international place, significantly in cross-border commerce and decentralised finance (DeFi).

He mentioned the $2 trillion forecast was “very reasonable”, particularly if regulation drives wider institutional adoption and belief.

His remarks comply with ongoing warnings from economists about challenges to the greenback’s dominance, particularly from Chinese language-backed central financial institution digital currencies (CBDCs) and different tokenised alternate options.

Nevertheless, Bessent famous that traditionally, the greenback has retained its reserve standing by adapting to new monetary architectures—a pattern he expects will proceed by way of the mixing of regulated stablecoins.

He emphasised that “stablecoins backed by US treasuries will serve as the next pillar of dollar strength”, calling on lawmakers to behave shortly so the US can lead in shaping this rising market.