Stablecoin Market Cap Nears $250 Billion Amid Regulatory Developments
The cryptocurrency market is experiencing bullish momentum, with investors shifting funds into stablecoins before acquiring volatile assets.
- Total value of stablecoins approaches $250 billion, nearing an all-time high
- Tether’s USDT leads with a market cap of $152.4 billion; Circle’s USDC at $61 billion
- Bitcoin reached a new all-time high of nearly $112,000
- Global crypto market cap stands at $3.52 trillion, $200 billion short of its all-time high in December 2024
GENIUS Act Implications
- David Sacks claims the GENIUS Act (Giving Equitable National Interest to US Stablecoins) could boost demand for US Treasuries
- Increased Treasury demand may lower borrowing costs for the US government
- This could drive investments towards stocks and cryptocurrencies
- 15 Democrats have joined Republicans in supporting the GENIUS Act
- Prominent Democratic Senators have shifted to support the bill
- The bill aims to establish a regulatory framework for stablecoin issuance by regulated fintech companies and banks
International developments include:
- Hong Kong's Legislative Council passed a bill allowing institutions to apply for stablecoin issuance licenses via the Hong Kong Monetary Authority
- South Korean presidential candidate Lee Jae-myung proposed creating a won-backed stablecoin