Trump Administration Pushes Stablecoin Legislation to Boost US Dollar

CITIC Securities has released a research report highlighting the recent legislative advancements in stablecoins within the United States and other nations. The report underscores that the Trump administration is championing cryptocurrency-related legislation for several strategic reasons. These include aiding families in accumulating wealth and fulfilling campaign pledges, fostering the growth of the stablecoin market to mitigate the strain of insufficient demand for U.S. debt, and reinforcing the link between stablecoins and the U.S. dollar to postpone the de-dollarization trend.

The report anticipates that the normalization of stablecoins will persist. The growth and evolution of the stablecoin market are seen as a medium- to long-term positive influence on the broader cryptocurrency market. However, the report suggests that a rapid upward trend in cryptocurrencies may hinge on achieving policy clarity from the Trump administration.