Tether and Circle Still Rule

The total stablecoin supply has surpassed $250 billion for the first time, according to the latest stats shared by Delphi Digital. Yield-bearing stablecoins are expanding rapidly, with Ethena alone reaching nearly $6 billion since launch.

Tether’s USDT and Circle’s USDC continue to dominate the space, and collectively account for 86% of the outstanding supply. However, issuer diversity is rising, with over 10 stablecoins now exceeding $100 million in circulation.

Over $120 billion in US Treasuries are now held within stablecoins.

Forces Behind the $250B Stablecoin Boom

It is important to note that the market has rebounded significantly after key disruptions over the past four years, including the May 2022 collapse of Terra (UST), which triggered a loss of confidence in algorithmic stablecoins, and the March 2023 USDC de-peg caused by the regional banking crisis and Circle’s $3.3 billion exposure to SVB.

Recent growth can be attributed to broader digital asset market recovery, the 2024 launch of US-listed spot crypto ETFs, and a shift in sentiment under the Trump administration, which has increased institutional interest and adoption of digital assets.

As the stablecoin market matures and gains momentum, policymakers are stepping in with new legislation in a bid to solidify the US’s leadership in digital finance.

GENIUS Act Advances

After the Senate passed the GENIUS Act in a 68-30 vote, US President Donald Trump called on the House to act quickly to pass the bill. The Guiding and Establishing National Innovation for US Stablecoins Act. On Truth Social, Trump said the bill would make America the “undisputed leader in digital assets,” and urged lawmakers to avoid delays or amendments.

The bill’s sponsor, Senator Bill Hagerty, had previously highlighted its potential to speed up payment processing across the country. The House, controlled by a narrow Republican majority, is now expected to take up the vote.

Criticism of the GENIUS Act has been fierce in some quarters, particularly from Democratic lawmakers concerned about conflicts of interest. The bill initially stalled in May, failing a cloture vote amid worries over Trump’s crypto connections.

Senator Elizabeth Warren, for one, stated that the legislation could enable Trump and his family to earn “hundreds of millions” through their USD1 stablecoin. While Senator Mark Warner echoed ethical concerns, he warned that continued inaction would leave the US behind.