In the coming months, the United States may approve a stablecoin bill that, according to Standard Chartered, could increase the total issuance of stablecoins nearly tenfold — from $230 billion to $2 trillion by the end of 2028. The new regulatory regime would not only legalize the market but also strengthen the dominance of the dollar and reshape the structure of the cryptocurrency industry.
What the Bill Is and Why It Matters
The bank refers to a bill called the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), which was approved by the Senate Banking Committee in March and could be passed by Congress as early as mid-year. It is expected that President Donald Trump will sign it after both chambers approve it.
The document aims to create a federal legal framework for issuing stablecoins. These play a key role in the industry: they are used for trading, capital storage, and cross-border transfers.
Issuance Will Grow — Along With Demand for Treasuries
Standard Chartered analysts led by Geoff Kendrick note that the adoption of the bill could legitimize the entire sector and sharply increase the volume of issued stablecoins. To support such growth, the bank estimates that issuers would need to acquire an additional $1.6 trillion in U.S. Treasury bills (T-bills) over the next four years.
This amount, according to analysts, is equivalent to the total volume of new bonds that the U.S. Treasury plans to issue by the end of Trump’s second term. In the long term, the stablecoin market could become not just a driver of the crypto industry but a pillar for financing national debt.
Support for the Dollar and a Shift in Market Architecture
Demand for U.S. dollars as a reserve asset to back stablecoins will rise, which, according to the bank, will strengthen the global hegemony of the American currency. Thus, despite the decentralized nature of cryptocurrencies, stablecoins could reinforce the dollar as the foundation of the global financial system.
Standard Chartered also believes that the market will adopt a model similar to USDC issuer Circle, which already holds 88% of its reserves in short-term government bonds with maturities of up to 12 days. In comparison, the largest issuer, Tether, holds 66% of its reserves in similar instruments.
What This Means for the Crypto Market
The increase in liquid and regulated stablecoins could trigger a new wave of capital inflows into cryptocurrency and DeFi platforms. The ability to legally operate within a stable infrastructure backed by government bonds will expand access to digital assets for institutional investors and strengthen the link between traditional finance and the crypto economy.
For example, the current total volume of stablecoins stands at around $230 billion. The market is dominated by USDT from Tether and USDC from Circle. Their share in overall crypto turnover is high, with applications spanning most crypto exchanges, decentralized protocols, and cross-border settlements.
If the GENIUS Act is passed, the market could receive clear rules that will serve as a benchmark for both U.S. and global players.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.