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Stablecoins could top $2 trillion by 2028, says Treasury Secretary Bessent as US moves to regulate sector
- The US stablecoins market represents 96% of the global $247 billion market.
- The GENIUS Act cleared a key hurdle after passing a cloture vote in the US Senate.
- Treasury Secretary Scott Bessent predicts the US stablecoin market could exceed $2 trillion by 2028.
- Regulations under the GENIUS Act aim to introduce strict guardrails for stablecoin issuers.
- The legislation mandates full backing by US dollars or similarly liquid assets for stablecoin issuers.
- The bill also requires annual audits for issuers with market capitalization over $50 billion.
- There are provisions in the bill to oversee activities of foreign-issued stablecoins in the US.
- President Donald Trump reportedly supports the bill and aims to have it signed into law before summer recess.
- The Treasury sees stablecoins as a new mechanism to reinforce the US dollar's global position in finance.
- Treasury Secretary Bessent believes wider institutional adoption and trust could drive the $2 trillion forecast for stablecoins.
- Stablecoins backed by US treasuries are seen as strengthening the dollar's role as a reserve currency.
- Bessent warns of challenges to the dollar's dominance from Chinese CBDCs and tokenised alternatives.
- The Treasury emphasizes the need for quick action from lawmakers to lead in shaping the emerging stablecoin market.
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