Genius Act Set to Ignite $2 Trillion Stablecoin Market, Says Chainlink’s Nazarov

The recently passed Genius Act has positioned the United States at the forefront of digital finance innovation. By regulating stablecoins and mandating full-reserve coverage in cash or U.S. Treasuries, the act provides a statutory framework for both traditional institutions and blockchain startups to issue stablecoins. chainlink co-founder Sergey Nazarov, a pivotal figure in the legislation, forecasts a tenfold surge in the stablecoin market—from $200 billion to $2 trillion—as tokenized assets reshape global finance.

Global banks, including JP Morgan, are transitioning from skepticism to active adoption, driven by stablecoin programmability and consumer demand. The act may also stabilize U.S. debt markets by distributing treasury holdings across millions of stablecoin users rather than concentrated foreign entities. Meanwhile, tokenized Gold with DeFi yields emerges as a competitive alternative to traditional Treasuries.