Stablecoin Market Accelerates as U.S. Rules Take Shape, Circle’s USDC Gains Momentum

Stablecoin Market Surges on U.S. GENIUS Act, USDC Gains Market Share: JPMorgan

JPMorgan analysts highlight that the U.S. GENIUS Act has accelerated stablecoin adoption, driving a 42% year-to-date growth in the sector, with Circle’s USDC steadily encroaching on Tether’s dominance.

The report notes that the stablecoin market now sits near $300 billion, nearly double the 21% growth of the broader crypto market in 2025. Stablecoins account for roughly 7.5% of the $3.8 trillion total crypto market cap and about 1.3% of the U.S. M2 money supply, up 35 basis points from the start of the year.

Since the GENIUS Act became law on July 18, the market cap of stablecoins has climbed 19%, underscoring how regulatory clarity is driving adoption.

Circle’s USDC has been the main beneficiary, rising from $61.5 billion at the end of June to $73.7 billion by late September, now holding 25.5% of the stablecoin market, up roughly 400 basis points year-to-date.

Tether (USDT) has lost ground, with its dominance dropping from 67.5% to 60.4%, while Ethena’s synthetic stablecoin USDe has grown to $14.4 billion, capturing a 5% market share.

Historically, USDT and USDC dominated the dollar stablecoin market, but JPMorgan notes that USDC now holds nearly 30% of their combined share, up from 24% at the start of the year. Analysts suggest the GENIUS Act may further favor Circle, while a fragmented stablecoin landscape could benefit platforms like Bullish (BLSH), which provide liquidity services across multiple issuers.