Stablecoin Market Cap Hits $230B Amid Trump Policies, Up 56% Year-Over-Year

On Thursday, the total market capitalization of stablecoins exceeded $230 billion for the first time, reflecting a surge in adoption and ongoing United States regulatory efforts to support their use.

Data from DefiLlama indicates that the stablecoin market cap currently stands at approximately $230.45 billion, having expanded by $2.3 billion in the past week. Compared to the same period last year, the sector has grown by 56%.

Notably, Tether’s USDT remains the dominant stablecoin, accounting for 62.6% of the total market capitalization, worth nearly $144 billion. Meanwhile, Circle’s USDC follows, with a market valuation of $59 billion.

Institutional Adoption and the Trump Administration’s Influence

A key driver of the recent stablecoin expansion is increased institutional participation in the crypto sector. According to DefiLlama, the stablecoin market cap has grown by approximately $20 billion since President Donald Trump took office on January 20.

Speaking at a crypto conference on Thursday, Trump reaffirmed his administration’s commitment to promoting dollar-pegged stablecoins to strengthen the U.S. dollar’s global standing. He urged Congress to establish clear regulatory guidelines for stablecoins, emphasizing that a well-defined framework would encourage broader institutional involvement and technological advancement.

Bo Hines, executive director of the President’s Council of Advisers on Digital Assets, echoed this sentiment earlier in the week, noting that stablecoin legislation could be finalized in the coming months.

Progress on Stablecoin Regulations

On March 13, the Senate Banking Committee voted to advance the “GENIUS Act,” a legislative proposal to establish regulatory standards for stablecoins. The bill includes provisions for enforcing 1:1 asset backing and implementing anti-money laundering safeguards.

The advancement of the GENIUS Act aligns with broader efforts to facilitate stablecoin adoption, primarily as regulatory barriers like SAB 121 are addressed. Paul Howard, senior director at crypto trading firm Wincent, suggested that the administration expects Congress to approve measures supporting this expansion. 

He also emphasized that stablecoins could see wider use in intra-company transactions and cross-border payments with more straightforward regulations. Howard described this shift as an overdue step in leveraging digital asset technology for more efficient financial operations.