BofA Projects Up to $75 Billion Growth in Stablecoin Supply Post-GENIUS Act Approval

BofA: Stablecoin Market Poised for $75B Growth After GENIUS Act Passage

The passage of the GENIUS Act has set the stage for significant growth in the stablecoin market, with Bank of America (BAC) projecting a $25 billion to $75 billion expansion in supply over the near term.

Signed into law last Friday by President Donald Trump, the GENIUS Act establishes a long-anticipated regulatory foundation for stablecoins—digital tokens backed by fiat currencies or real-world assets. Bank of America views the legislation as a major catalyst for infrastructure development and broader adoption of tokenized financial products.

Regulatory Clarity Fuels Market Momentum

According to the bank’s latest report, the anticipated stablecoin growth will be fueled by new product offerings, infrastructure investment, and competitive pressure from tokenized deposits and money market funds. With the current stablecoin market capitalization hovering around $270 billion, the projected increase represents a substantial uptick.

BofA analysts believe that over the next two to three years, regulatory clarity—particularly from the forthcoming CLARITY Act—will drive consolidation within the stablecoin sector and accelerate the adoption of tokenized assets across the financial ecosystem.

CLARITY Act Could Further Accelerate Adoption

The CLARITY Act, which recently passed the House and now heads to the Senate, is expected to bring further transparency by categorizing digital assets as either commodities or securities. This distinction is seen as crucial for unlocking institutional participation and creating a consistent legal framework for the industry.

Banks Eye Stablecoin Issuance

U.S. banks are increasingly preparing to enter the stablecoin space, with many favoring consortium-led issuance models. Bank of America CEO Brian Moynihan noted the bank is ready to move forward once market conditions align. The report highlighted that while cross-border stablecoin use cases are gaining traction, U.S. banks do not foresee immediate disruption to domestic payment systems.

Treasury Market Implications

On the macroeconomic front, BofA pointed out that rising demand for U.S. Treasuries used as stablecoin reserves could influence federal issuance strategy, potentially shifting focus toward short-term bills.

Overall, the GENIUS Act and pending CLARITY legislation signal a pivotal shift in the U.S. regulatory stance toward digital assets—one that BofA believes could unlock the next phase of growth for stablecoins and tokenized finance.