Regulators Set Stage for Stablecoin Gold Rush with $240 Trillion Potential

The U.S. Treasury and major financial institutions anticipate a transformative shift in the stablecoin landscape, with the potential for the market to grow into a multitrillion-dollar industry. This forecast is supported by the recent passage of the GENIUS Act, a legislative milestone aimed at providing regulatory clarity for stablecoin operations. U.S. Treasury Secretary Scott Bessent has emphasized that stablecoins—digital tokens backed by high-quality assets such as U.S. dollars or Treasuries—could significantly boost demand for government bonds and enhance the global role of the U.S. dollar [1]. The act is expected to harmonize state and federal regulatory frameworks, fostering a consistent and supportive environment for innovation [1].

Goldman Sachs has echoed these sentiments, forecasting a "stablecoin gold rush" driven by regulatory clarity and the potential expansion of the payment market. According to the firm's research, the global stablecoin market currently stands at approximately $271 billion, with U.S. dollar-pegged stablecoins such as Circle's USDC poised to gain market share. Goldman predicts a 40% compound annual growth rate for USDC from 2024 to 2027, translating to $77 billion in growth. The firm also highlights the vast addressable market for stablecoin payments, citing Visa’s estimate of around $240 trillion in annual payment volume [1].

The potential economic impact of stablecoins extends beyond market expansion. The U.S. Treasury anticipates that increased adoption of stablecoins will stimulate demand for short-term U.S. government debt. This expectation is rooted in the requirement for stablecoins to be backed 1 to 1 by U.S. dollars or Treasuries. As a result, each new stablecoin issuance could indirectly increase the demand for government bonds. However, some analysts argue that this dynamic may simply redistribute rather than increase overall demand for U.S. debt instruments [1].

Despite these debates, the regulatory environment is evolving rapidly. The U.S. Treasury has initiated a 60-day public comment period to gather insights on detecting and preventing illicit activities in the crypto space, a key requirement under the GENIUS Act. This move underscores the administration's commitment to addressing risks while fostering innovation. Additionally, the Treasury is working with other federal agencies, including the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp., to develop oversight policies for stablecoin issuers [4].

Internationally, the United Kingdom is also taking steps to align with global trends. Crypto firms have called on the U.K. government to develop a national stablecoin strategy, warning that inaction could result in the country becoming a passive participant in the evolving digital asset ecosystem. This strategy would aim to position stablecoins as a responsible financial infrastructure rather than a risk to be managed [2]. As the stablecoin market continues to mature, the role of cross-border collaboration in shaping regulatory frameworks will become increasingly critical.

Source: [1] Goldman Sachs says we're on the verge of a stablecoin gold rush (https://finance.yahoo.com/news/goldman-sachs-says-verge-stablecoin-104117655.html) [2] Crypto firms urge UK to form national stablecoin strategy (https://www.cnbc.com/2025/08/20/crypto-uk-stablecoin-strategy.html) [3] It's Been The 'Summer of Stablecoins,' Goldman Says. Will ... (https://www.investopedia.com/it-s-been-the-summer-of-stablecoins-goldman-says-will-traditional-finance-be-upended-11793816) [4] U.S. Treasury Starts Work on Stablecoin Law, Gathering ... (https://www.coindesk.com/policy/2025/08/18/u-s-treasury-department-starts-work-on-genius-gathering-views-on-illicit-activity)