Stablecoins may escalate eightfold, surpassing $2 trillion by the year 2028, according to U.S. Treasury Secretary Scott Bessent.
Yowza, Treasury Secretary Scott Bessent predicts that the market cap of stablecoins could surge past $2 trillion by 2028, thanks to legal legislation.
On June 11, Bessent testified before the Senate Appropriations Committee (SAC) and told 'em straight: "I reckon stablecoin legislation backed by U.S treasuries and T-bills will ramp up the use of the U.S dollar via stablecoins all around the world. $2T sounds reasonable, but I reckon it'll exceed that."
Notably, the Senate stablecoin bill, the GENIUS Act, recently passed a crucial vote on Wednesday, increasing its chances of being passed in Q3.
T-bills and Stablecoins: A Match Made in Heaven?
In a May report, the Treasury Department acknowledged the importance of stablecoins in the T-bills market. As of Q1 2025, Tether, the issuer of the largest USDT stablecoin by market cap, was the 19th top net buyer of T-bills, holding $119 billion of T-bills as part of its reserves backing USDT.
Circle, the second-largest stablecoin issuer, has a nearly identical reserve structure backing its USDC stablecoin.
The GENIUS Act offers a legal framework for stablecoin issuers in the U.S., ensuring user protection and minimizing illicit activities.
Circle's IPO was a resounding success, with its stock, CRCL, increasing by 300% from a pre-IPO level of $31 to over $120, before cooling off slightly. The stablecoin sector has been the fastest-growing market over the past five years, expanding over 50x from $5 billion to $251 billion market cap, with Tether's USDT dominating at 62%.
An expansion to $2 trillion would mean an impressive 8x growth from the current level.
Stablecoin's Push for the Big League
With the GENIUS Act, the stablecoin sector is expected to expand further, and clear regulation could serve as a key catalyst. The market cap of USDT is currently $156 billion, followed by USDC at $60 billion. Given the huge use case in remittances and global business payments, the sector is projected to keep growing.
Sources:- Tether- DeFiLlama
Enrichment Data:- The GENIUS Act aims to establish clear rules for stablecoin issuers, mandate reserve backing, require regular disclosures and audits, and address concerns about transparency and reserve sufficiency.- The legislation calls for compliance with the Bank Secrecy Act, including requirements for anti-money laundering, customer identification, and enhanced due diligence.- The Act reportedly prohibits yield-bearing stablecoins and restricts large technology firms from acting as issuers.- If passed, the GENIUS Act will likely provide a clear legal framework, increasing confidence and accelerating mainstream adoption, potentially driving the stablecoin market beyond $1 trillion by 2028.- Despite political challenges, the GENIUS Act represents a crucial stepping stone in the regulation of stablecoins, setting a precedent for future legislation.
- With the passage of the GENIUS Act, the stablecoin sector could exceed a $2 trillion market cap by 2028, following Treasury Secretary Scott Bessent's prediction.
- Tether, the issuer of the largest USDT stablecoin, was the 19th top net buyer of T-bills in Q1 2025, holding $119 billion of T-bills as part of its reserves backing USDT.
- The second-largest stablecoin issuer, Circle, has a nearly identical reserve structure backing its USDC stablecoin.
- The GENIUS Act aims to establish clear rules for stablecoin issuers, including reserve backing, regular disclosures, audits, compliance with the Bank Secrecy Act, and addressing concerns about transparency and reserve sufficiency.
- The GENIUS Act, with its focus on regulation and user protection, could potentially drive the stablecoin market beyond $1 trillion by 2028, increasing confidence and accelerating mainstream adoption in the finance and business sectors, as well as the crypto and technology industries.
