Stablecoins Expected to Achieve Mainstream Adoption Following U.S. Regulatory Advances
Investment bank Deutsche Bank reports stablecoins are nearing mainstream adoption, supported by ongoing U.S. crypto legislation efforts. Key points include:
- Despite Senate resistance, progress in stablecoin regulation is anticipated this year.
- Stablecoins, linked to assets like the U.S. dollar, currently have a market cap of $246 billion, up from $20 billion in 2020.
- Tether's USDT dominates with a market cap around $150 billion.
- Stablecoins facilitate over two-thirds of crypto trading, providing speed and low-cost payments.
- The GENIUS Act mandates federal regulation for stablecoins above $10 billion, with potential state-level regulations.
- The Genius Act's passage could lead to a nearly 10-fold increase in stablecoin supply, per Standard Chartered.
Stablecoins are increasingly viewed as strategic assets, reinforcing dollar dominance globally.