US stablecoin supply jumps $4 billion after new crypto laws

Tether and Circle dominate the fiat-backed stablecoin market, now valued at over $227 billion combined.

Nearly $4 billion entered the stablecoin market in a week following US regulatory clarity from the GENIUS Act.

The recently passed GENIUS Act has sparked a $4 billion increase in the stablecoin market within a week, pushing its total value beyond $264 billion. The legislation offers clear federal rules, encouraging banks, asset managers, and crypto firms to launch new fiat-backed stablecoins.

Under the GENIUS Act, issuers must hold full reserves, undergo audits, and obtain licences to avoid SEC enforcement. Tether’s USDT and Circle’s USDC dominate this space with a combined market cap of over $227 billion.

Crypto-backed and algorithmic stablecoins remain less prominent and face distinct regulatory challenges.

Institutional involvement is rising quickly. Anchorage Digital teamed with Ethena Labs to launch a stablecoin platform, while WisdomTree introduced a regulated dollar-backed stablecoin.

Major banks, including Bank of America, JPMorgan, and Citigroup, are also preparing to enter the market, signalling broader traditional finance engagement.

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