On January 9th, as stated by Circle’s CEO, Jeremy Allaire, the stablecoin issuer Circle contributed a sum of one million US Dollars worth of USDC (USD Coin) to the Inauguration Committee of President-elect Donald Trump.
The CEO stated that accepting the donation by the incoming President indicates a progression or growth towards maturity for this emerging investment category.
According to data from RWA.XYZ, the overall market value of stablecoins is roughly estimated at around $203 billion, and USD Coin (USDC) alone represents about $44 billion of that figure.
On January 20, Trump is set to take office again. Many industry leaders are expressing broad optimism about the upcoming Trump administration due to expectations of favorable crypto policies and a complete overhaul of regulations.
Stablecoins become a cornerstone crypto policy issue
In April 2024, U.S. Senators Kirsten Gillibrand and Cynthia Lummis jointly proposed a bill known as the Lummis-Gillibrand Payment Stablecoin Act.
Or simply:
In April 2024, Senators Kirsten Gillibrand and Cynthia Lummis teamed up to sponsor the Lummis-Gillibrand Payment Stablecoin Act.
When Senator Gillibrand presented the bill to the Senate, she penned down, “Establishing a regulatory structure for stablecoins is indispensable for preserving the US dollar’s global standing.
In June, the ex-US House Speaker, Paul Ryan, penned an article suggesting that digital currencies called stablecoins might help solve the country’s debt crisis and preserve the U.S. dollar’s status as the world’s primary reserve currency.
As an analyst, I’ve come to the conclusion that proponents of overcollateralized stablecoin issuance, who cumulatively possess over $120 billion in short-term U.S. Treasury bonds, believe this practice could stimulate interest in U.S. government debt due to its backing.
In response to an article by Ryan, Senator Bill Hagerty put forward the Clarity for Payment Stablecoins Act in October. The purpose of this act is to establish a complete regulatory structure for stablecoins.
The proposed legislation contained a clause that would allow smaller stablecoin issuers, those with a market cap under $10 billion, to be governed by individual states instead of on a federal level.
Crypto VCs eye stablecoins in 2025
According to Guy Young, the creator of Ethena, it’s expected that the market value of stablecoins will surge to an astounding $300 billion by the year 2025 – with established players like Tether and Circle leading the charge.
Deng Chao, head of HashKey Capital – a firm managing institutional assets – has shared with CryptoMoon his belief that stablecoins are among the digital asset categories that venture capitalists might consider investing in during the year 2025.
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2025-01-09 20:02