Dollar stablecoins could reach $2 trillion in market cap as the US Treasury actively supports legislation to boost…

Dollar stablecoins could reach $2 trillion in market cap as the US Treasury actively supports legislation to boost stablecoin adoption. Treasury Secretary Scott Bessent projects this massive growth will strengthen crypto regulation and drive DeFi growth worldwide. The GENIUS Act creates the regulatory framework needed for dollar stablecoins to cement America’s digital currency dominance.

Also Read: Circle and Matera Join Forces to Power Global Stablecoin Use

Stablecoin Adoption, Regulation, And DeFi Growth In A $2T Market

Treasury Secretary’s $2 Trillion Vision

Treasury Secretary Scott Bessent has made ambitious estimates of dollar stablecoins, and he is focusing on how they could revolutionize international finance today. The US Treasury faces a huge potential in facilitating the adoption of stablecoins by establishing a comprehensive regulation of crypto assets.

At the time of writing, Bessent has been quite vocal about his projections. During recent Senate hearings, he was clear about the fact that:

“I think that $2 trillion is a very reasonable number, and I could see it greatly exceeding that.”

Current dollar stablecoins maintain approximately $247 billion in market cap, which represents over 96% of the entire stablecoin market. This DeFi growth foundation supports the projected expansion to $2 trillion, and it’s creating a solid base for future development.

Bessent also had this to say about the legislative framework:

“I believe that stablecoin legislation backed by US treasuries or T-bills will create a market that will expand US dollar usage via these stablecoins all around the world.”

GENIUS Act Drives Dollar Stablecoins Regulation

The GENIUS Act provides the regulatory framework for dollar stablecoins expansion, and it’s gaining bipartisan support. The US Treasury supports this legislation to ensure proper stablecoin adoption standards and strengthen crypto regulation for DeFi growth across markets.

The bill requires stablecoins to be fully backed by US dollars or liquid assets, also mandating annual audits for issuers exceeding $50 billion market cap. This ensures transparency for large-scale dollar stablecoins operations and creates accountability standards.

President Trump has indicated he wants to sign the bill before August, which accelerates the timeline for implementation and signals strong political momentum behind the regulatory framework right now.

Treasury Demand From Dollar Stablecoins

The projected dollar stablecoins growth will generate massive demand for U.S. Treasury securities, and the US Treasury expects significant benefits from increased stablecoin adoption. This creates new demand for government debt through crypto regulation requirements and supports fiscal objectives.

Major issuers already demonstrate this approach effectively. Tether holds nearly $120 billion in Treasury bills backing USDT, while Circle reported over $22 billion in T-bill holdings for USDC. This DeFi growth pattern supports the $2 trillion projection and shows institutional commitment.

Strategic Dollar Dominance Through Dollar Stablecoins

The US Treasury views dollar stablecoins as essential for maintaining global currency dominance, and strategic stablecoin adoption through proper crypto regulation will extend dollar influence into digital finance. This supports continued DeFi growth and strengthens America’s monetary position.

Even more, stablecoin regulation will become law by August 2025, says Ripple’s CEO Brad Garlinghouse. He basically sees Circle’s $9 billion IPO as proof that the GENIUS Act will pass.

Bessent emphasized the historical context during his testimony, stating:

“In the history of the US dollar as a reserve currency there have been numerous passages along the way where many people assumed that the U.S. dollar would lose reserve currency status and there’s always been a new mechanism that has cemented that.”

He also reinforced the administration’s commitment, saying:

“As President Trump has directed, we are going to keep the U.S. the dominant reserve currency in the world, and we will use stablecoins to do that.”

Also Read: South Korea Unveils Plan To Allow Crypto Stablecoins

The $2 trillion dollar stablecoins market represents a fundamental shift in U.S. digital currency policy. The US Treasury’s support for comprehensive stablecoin adoption, combined with strong crypto regulation through the GENIUS Act, positions these assets as cornerstones of future digital finance infrastructure and continued DeFi growth.