Congressional Stablecoin Bill Could Reshape $29 Trillion Treasury Market

The U.S. Senate is poised to pass landmark stablecoin legislation as early as next week, mandating full reserve backing with liquid assets like Treasury bills. This regulatory framework could dramatically alter both the crypto sector and traditional finance markets.

Tether and Circle currently dominate the space with $166 billion in Treasury holdings, but Standard Chartered projects the market could balloon to $2 trillion by 2028 under federal oversight. The rapid growth raises concerns among analysts about potential Treasury market disruptions during periods of mass redemptions.

Circle's recent NYSE debut signals growing institutional acceptance, while Treasury Secretary Scott Bessent actively supports the bill as a mechanism to bolster demand for U.S. government debt. The legislation requires monthly reserve disclosures, bringing unprecedented transparency to the $247 billion stablecoin sector.