Stablecoin Supply Soars by $4B Following US Crypto Legislation

Jimmy Aki
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Following the passage of the GENIUS Act by the US House of Representatives, early signs of its impact are already showing across the crypto industry. The total value of stablecoins in circulation has increased by nearly $4 billion, pushing the market cap to $265 billion.

GENIUS Act Focuses on Fiat-Backed Stablecoins Like USDT and USDC

According to recent data from DeFiLlama, the stablecoin market was valued at $260.7 billion a day before the GENIUS Act was passed. By July 25, that number had climbed to $265.217 billion. This translates to nearly $4.5 billion added in only a few days.

The GENIUS Act, passed by the Senate on July 17 and approved by the House two days later, is already shifting momentum across the industry.

It provides long-awaited regulatory clarity for fiat-backed stablecoins, which make up about 85% of the total stablecoin market. These include Tether’s USDT and Circle’s USDC. Together, these two tokens now account for $227 billion in circulation.

Under the new law, issuers must maintain full reserves, pass regular audits, and secure proper licenses.

For banks, asset managers, and crypto firms, this framework has answered a question that’s hung over the market for years. Can we trust this system enough to build on it? The answer is self-evident.

Before the passage of the GENIUS Act, stablecoin operations existed in a regulatory gray zone. Institutions were hesitant, and innovation was slow. However, things are changing fast as both capital and builders are returning.

On July 22, Anchorage Digital, the first federally chartered crypto bank, announced a new stablecoin platform in partnership with Ethena Labs. Together, they launched Ethena’s USDtb under the new framework.

Wall Street asset manager WisdomTree has also entered the race with the introduction of USDW, a dollar-backed stablecoin aimed at powering dividend-paying tokenized assets.

Even legacy banks are making moves. On July 16, Bank of America CEO Brian Moynihan confirmed the bank is actively exploring a stablecoin launch, pending full alignment with the new rules.

Now, with US crypto regulations finally catching up, that goal seems more within reach than ever.

US Treasury Estimates Stablecoin Market Could Reach $2 Trillion by 2028

The GENIUS Act is doing more than lifting short-term numbers. It is shaping the long-term future of the stablecoin market, and that future looks massive.

On July 12, US Treasury Secretary Scott Bessent projected that the stablecoin market could grow to $2 trillion by 2028.

His forecast stemmed from the impending passage of the GENIUS Act and the wave of confidence now flowing through financial institutions and crypto firms alike. The projection depends on how well stablecoins are woven into traditional banking systems.

Already, banks, fintechs, and asset managers are adjusting. Some are launching stablecoins. Others are building tools to support them. All of them are watching closely as the US locks in clear crypto regulations after years of delays and confusion.

Meanwhile, Tether is preparing to deepen its US footprint. In a recent interview with Bloomberg, CEO Paolo Ardoino revealed the company’s plans to expand under the GENIUS Act.

He emphasized that the rollout will be gradual and carefully managed, with a full focus on meeting federal compliance standards at every step.

While fiat-backed stablecoins are the clear focus of the legislation, the GENIUS Act doesn’t ignore other categories.

Algorithmic stablecoins, like the one behind the Terra collapse, remain outside this framework for now. Lawmakers say these tokens are too risky to regulate under the same structure and plan to address them separately shortly.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.