US Moves to Regulate Stablecoins, Aiming to Cement Dollar Supremacy
The US Senate has passed the GENIUS Act to establish a federal regulatory framework for dollar-backed stablecoins, now awaiting House approval. Treasury Secretary Scott Bessent told X on June 19, 2025, that stablecoins could reinforce the US dollar’s global dominance by becoming major buyers of Treasurys and T-bills. Former President Trump called the bill “pure GENIUS” and urged swift passage. Major firms like JPMorgan, Apple, Bank of America, Walmart and Amazon are entering the market. The legislation promises legal certainty for issuers and users, likely unlocking institutional adoption on Ethereum and surging USDC volumes. With projects such as Coinbase’s Base and JP Morgan’s tokenized deposits highlighting growing TradFi engagement, the stablecoin market could reach $3.7 trillion by 2030, boosting ETH usage and network utility.
Bullish
Clear stablecoin regulation and high-level Treasury support reduce legal uncertainty and encourage major corporations and financial institutions to adopt USDC on Ethereum. Combined with forecasts of a $3.7 trillion market by 2030 and TradFi engagement via Base and tokenized deposits, demand for USDC and ETH is set to rise. This positive outlook is likely to drive both short-term trading volumes and long-term network utility, reinforcing a bullish stance on ETH and stablecoins.