US Treasury Secretary: Dollar Stablecoin Market to Surpass $2 Trillion by 2028

Treasury Secretary Scott Bessent believes that the dollar-backed stablecoin market could exceed $2 trillion by 2028. However, his prediction is only possible if a strong regulatory framework is passed.

His remarks came as stablecoin adoption increases in the United States, with institutional investors looking to enter the market.

Stablecoins, Key to Maintaining Dollar Dominance: Scott Bessent

At a Senate hearing on Wednesday, Bessent emphasized the potential of stablecoins to strengthen global dollar adoption and maintain U.S. financial leadership.

"The stablecoin bill backed by U.S. Treasury will create a market that expands dollar usage globally through these stablecoins... I think $2 trillion is a very reasonable number, and I believe it could significantly exceed that." – Bessent statement.

His remarks came as the U.S. Senate voted to advance the long-awaited bipartisan GENIUS Act, which provides safeguards for stablecoin issuers.

The bill stipulates that all stablecoins must be fully backed by dollars or similar liquid assets. It also requires annual audits for issuers with a market capitalization exceeding $50 billion.

Additionally, the GENIUS Act includes provisions to regulate foreign-issued stablecoins operating in the U.S. market.

The cloture vote passed for the GENIUS Act is considered a crucial step in legitimizing stablecoins as a core component of the modern financial system.

Donald Trump is said to support the bill and wants it to be enacted into law before the summer recess.

"In the history of the U.S. dollar as a reserve currency, there have been many moments when many assumed the U.S. dollar would lose its reserve currency status, and there have always been new mechanisms to solidify it." – Bessent statement.

This reflects the Trump administration's resolve to strengthen the dollar's status through USD-backed stablecoins.

Wall Street and Washington Agree on Stablecoin Strategy

Meanwhile, stablecoins have become crucial as a digital financial infrastructure, especially in cross-border trade and DeFi.

The total market capitalization of dollar-linked stablecoins is around $247 billion, accounting for over 96% of the global stablecoin market.

The Senate's regulatory progress came amid increasing development in this sector. The U.S.-based fintech company Circle, USDC issuer, recently went public and saw its stock surge by 235% on its first trading day.

Meanwhile, traditional finance (TradFi) institutions are entering this space. BeInCrypto reported that Bank of America has begun developing a USD-backed stablecoin. This is a significant move for traditional banks entering blockchain infrastructure.

The general perception is that official regulation could trigger a new wave of institutional participation. These results are expected to transform stablecoins from cryptocurrency tools to mainstream financial tools.

"Stablecoin summer! We expect several major financial institutions—banks, fintechs, and payment platforms—to quickly launch and support stablecoins." – SMQKE, technology change researcher.

If the GENIUS Act passes, it could help establish the U.S. dollar's dominance in the digital economy. Bessent's optimistic prediction reflects a broad consensus within the Treasury that stablecoins could be a powerful tool for expanding U.S. monetary influence if properly regulated.

"Stablecoins backed by U.S. Treasury will be the next pillar of dollar strength. We must lead in shaping this market." – Bessent statement.