BofA Projects $75B Stablecoin Surge Amid US Regulatory Clarity

Bank of America projects a near-term surge of up to $75 billion in stablecoin supply, driven by growing institutional interest and recent U.S. regulatory advancements. The passage of the GENIUS Act, signed into law by President Donald Trump, provides clear federal oversight and compliance guidelines for fiat-backed stablecoins, which has already spurred a nearly $4 billion increase in market capitalization and encouraged major banks and asset managers to develop compliant stablecoin offerings. The pending CLARITY Act, awaiting Senate approval, aims to further clarify the classification of digital assets as securities or commodities, which is expected to accelerate tokenized finance adoption. This regulatory clarity is prompting coordinated consortium-led stablecoin issuance models among financial institutions, positioning stablecoins as viable tools for cross-border transactions and alternative asset storage. The expansion of stablecoins, typically backed by U.S. dollar reserves, is also anticipated to increase demand for short-term U.S. Treasury securities, potentially influencing Treasury issuance strategies. Industry leaders like Coinbase CEO Brian Armstrong emphasize open participation in stablecoin creation, reflecting a broader shift toward integrating stablecoins into mainstream financial services with enhanced liquidity and transparency.