Bank of America (BAC) says the GENIUS Act, signed into law last Friday by President Donald Trump, marks a turning point for U.S. stablecoin regulation, laying the groundwork for infrastructure development and tokenized finance growth.
Supply of stablecoins, crypto tokens whose value is pegged to real world assets such as fiat currencies or gold, will grow a “relatively modest” $25 billion-$75 billion in the near term, driven by product rollouts, infrastructure investment and competition from tokenized deposits and money market funds, the bank said in a report last week.
The total market cap for stablecoins is currently about $270 billion, according to CoinMarketCap data.
Over the next 2–3 years, the bank’s analysts foresee stablecoin consolidation and broader adoption of these cryptocurrencies and other tokenized assets, supported by the enactment of the CLARITY Act.
That act aims to establish a clear regulatory framework for digital assets in the U.S., distinguishing cryptocurrencies as either commodities or securities. The legislation has been passed by the House of Representatives and will now be considered by the Senate.
Banks appear ready to issue their own stablecoins, with management teams leaning toward consortium-led models, the report noted. BofA is itself preparing to enter the stablecoin market, CEO Brian Moynihan said last week. The bank has already laid the groundwork and expects to act when the time is right, he said.
While cross-border use cases are gaining traction, most bank executives do not expect near-term disruption to domestic payments, the report added.
On the macro front, demand for U.S. Treasuries tied to stablecoin reserves could prompt the Treasury Department to shift issuance toward short-term bills, the bank said.
Read more: JPMorgan Sees Stablecoin Market Hitting $500B by 2028, Far Below Bullish Forecasts