US Federal Reserve Governor Stephen Miran says policy must catch up to the growing market for stablecoins, which he predicted could grow to as much as $3 trillion by the end of the decade.
“Stablecoins could become a multibillion-dollar elephant in the room for central bankers,” Miran, who is the newest member of the Fed’s board of governors after his recent appointment, said in a statement speech.
“Based on the research I’ve seen and the predictions I’ve seen, it’s a force to absolutely be reckoned with,” he said of the stablecoin market.
“The interquartile range of private sector estimates compiled by Federal Reserve staff roughly assumes that stablecoin uptake will reach between $1 trillion and $3 trillion by the end of the decade,” he added.
That forecast market cap range is significantly higher than the industry’s current cap, which is approximately $305.514 billion, according to DefiLlama data.
Market capitalization of Stablecoin (Source: DefiLlama)
Miran did say that “growth of stablecoins may not meet expectations” and mentioned possible return and reward schemes that “could limit adoption.”
GENIUS Act provides regulatory clarity to the industry
Miran’s prediction comes after US President Donald Trump signed the GENIUS Act into law earlier this year in July. The new Fed Governor said that as a result of this signing, “there is now a clear regulatory pathway in the US for stablecoin issuers to expand their reach and consolidate stablecoins as a core part of the payments system.”
“I am encouraged that the Federal Reserve is taking steps to recognize the importance of stablecoins to the payments system,” he said.
However, Miran added that “economic research still has some catching up to do.” He also said there are still a number of open questions that still need to be answered.
These include questions about how many assets stablecoin issuers will manage, whether the funds will come from domestic or foreign sources, and what are the systemic risks that stablecoins pose to the traditional financial system.
Stablecoins will strengthen the global dominance of the dollar
Miran also said that stablecoins contribute to the global dominance of the US dollar. The largest stablecoins by market capitalization, such as Tether’s USDT, which represents over 60% of the sector, are tokens pegged to the dollar.
Fastest growing stablecoins, based on 30d growth (%) of market cap.
One important takeaway:
The stablecoin market attracts both TradFi and crypto-native teams; many of which are building on it @ethereum. pic.twitter.com/epKfKxBTAI
— Tokenterminal 📊 (@tokenterminal) November 6, 2025
“My contention is that stablecoins are already increasing demand for U.S. Treasury bonds and other dollar-denominated liquid assets by buyers outside the United States and that this demand will continue to grow,” the Fed Governor said.
He added that even stablecoins outside the jurisdiction of the GENIUS Act are “likely to boost demand for government bonds and other dollar-denominated assets.”
“Stablecoins that do not comply with the GENIUS Act can invest reserves in a much broader range of assets, but to be seen as a reliable store of value, will likely still invest substantially in US dollar securities with minimal credit risk,” Miran explains.
That increased demand will then also lower borrowing costs for the U.S. government, he added.
However, to enable the adoption of stablecoins, Miran argued that there must be a bridge from local fiat currency to stablecoins.
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