Bank of America Sees Up to $75B Stablecoin Growth as U.S. Regulatory Framework Takes Shape
The recent passage of the GENIUS Act marks a critical step in shaping the future of digital finance in the U.S., according to a new report from Bank of America (BAC). The bank forecasts a $25 billion to $75 billion increase in stablecoin supply in the near term, driven by regulatory clarity, infrastructure investments, and growing institutional interest.
Signed into law last Friday by President Donald Trump, the GENIUS Act provides a foundational legal framework for stablecoins—digital tokens typically pegged to fiat currencies or physical assets. BAC analysts say the new law paves the way for a broader shift toward tokenized financial instruments.
Institutional Adoption on the Horizon
Currently, the stablecoin market stands at around $270 billion. Bank of America expects that figure to rise significantly in coming quarters as banks and fintechs roll out new offerings and compete in the tokenized money space. Stablecoins backed by U.S. Treasuries and tokenized money market funds are expected to play a central role in the expansion.
The CLARITY Act, another key piece of legislation now moving through Congress, is seen as a potential accelerant. The bill aims to definitively classify digital assets as either securities or commodities—a distinction that could finally bring consistency to U.S. crypto regulation. Having passed the House, the act now awaits Senate consideration.
Banks Preparing for Entry
Bank of America noted that traditional financial institutions are preparing to enter the stablecoin market, with many leaning toward consortium-led issuance models. CEO Brian Moynihan confirmed last week that BAC has the necessary infrastructure in place and is ready to move once market dynamics align.
While cross-border applications for stablecoins continue to grow, BofA’s report suggests that banks do not expect major disruption to domestic payment systems in the short term.
Macro Impact: U.S. Treasuries in Focus
Stablecoins backed by U.S. government debt could also influence Treasury market dynamics, the bank added. Rising demand for short-duration instruments to serve as collateral may prompt the Treasury Department to adjust its issuance strategy toward more short-term bills.
With both regulatory clarity and institutional momentum building, BofA sees the U.S. poised for a major wave of tokenization in financial markets—with stablecoins at the forefront.
