Bank of America Expects Stablecoin Supply to Jump by $75B Following U.S. Legislation

BofA Projects Stablecoin Supply Surge Following GENIUS Act, Eyes Growing Role for Tokenized Assets

Bank of America expects U.S. stablecoin issuance to accelerate in the wake of the newly enacted GENIUS Act, estimating supply growth of $25 billion to $75 billion over the near term. The legislation, signed into law last Friday by President Donald Trump, establishes the country’s first regulatory framework for fiat-backed digital assets, signaling a pivotal shift in crypto policy.

The bank’s latest research suggests that the GENIUS Act will serve as a catalyst for infrastructure development, product innovation, and rising competition between stablecoins, tokenized deposits, and money market funds. As of now, the global stablecoin market is valued at approximately $270 billion, per CoinMarketCap.

CLARITY Act Seen as Next Key Catalyst

BofA analysts also pointed to the CLARITY Act—currently progressing through the U.S. Senate after passing the House—as a major regulatory milestone. The legislation aims to formally distinguish digital assets as either securities or commodities, potentially unlocking broader participation by traditional finance and offering long-awaited legal certainty to market participants.

Banks Prepare for On-Chain Expansion

According to the report, large financial institutions are preparing to launch their own stablecoins, with many preferring consortium-backed issuance models. Bank of America CEO Brian Moynihan confirmed that the firm has already built internal infrastructure and is positioned to enter the stablecoin market when conditions align.

While cross-border use cases for stablecoins continue to gain momentum, most executives surveyed by BofA do not foresee immediate disruption to domestic payments infrastructure. However, the long-term potential for programmable finance and tokenized money markets remains significant.

Treasury Implications

The bank also noted that increasing demand for U.S. Treasuries—used as reserves backing many stablecoins—could influence government debt issuance strategies. A shift toward shorter-duration Treasury bills may emerge as stablecoin adoption scales.

With legal clarity taking shape and institutional readiness building, BofA sees the U.S. at the threshold of a new era for tokenized finance—led by an expanding stablecoin market and underpinned by evolving regulatory support.