Bank of America on GENIUS Act

Bank of America (BAC) reports that the GENIUS Act, signed into law by President Trump, signifies a major shift in U.S. stablecoin regulation, paving the way for infrastructure and tokenized finance development.

Stablecoin Supply Growth

The supply of stablecoins, crypto tokens tied to real-world assets like fiat currencies or gold, is projected to increase by a “relatively modest” $25 billion-$75 billion in the near term. This growth will be driven by product rollouts, infrastructure investments, and competition from tokenized deposits and money market funds.

Currently, the total market cap for stablecoins is approximately $270 billion, according to CoinMarketCap data.

Future Predictions

In the next 2-3 years, analysts anticipate stablecoin consolidation and wider acceptance of cryptocurrencies and other tokenized assets, bolstered by the CLARITY Act.

The CLARITY Act aims to create a clear regulatory framework for digital assets in the U.S., classifying cryptocurrencies as either commodities or securities. The legislation has passed the House of Representatives and will soon be reviewed by the Senate.

Bank Preparedness

Banks are preparing to issue their own stablecoins, with many executives favoring consortium-led models. Notably, BofA’s CEO Brian Moynihan stated the bank is ready to enter the stablecoin market when appropriate, having already laid the groundwork.

Market Effects

While cross-border stablecoin applications are increasing, most banks do not anticipate immediate disruption to domestic payments. Additionally, the demand for U.S. Treasuries linked to stablecoin reserves may lead the Treasury Department to adjust its issuance toward short-term bills.

Read more: JPMorgan Sees Stablecoin Market Hitting $500B by 2028, Far Below Bullish Forecasts