Stablecoin issuer Circle has donated $1 million USD Coin (USDC) to President-elect Donald Trump’s Inauguration Committee. Circle CEO Jeremy Allaire shared the news on January 9, stating that the acceptance of the donation reflects the growing maturity of stablecoins as a legitimate asset class.
According to RWA.xyz, stablecoins currently boast a market capitalization of approximately $203 billion, with Circle’s USDC contributing $44 billion to this total.
Growing Optimism for Stablecoin Regulation
The stablecoin sector continues to draw attention from policymakers. Senators Kirsten Gillibrand and Cynthia Lummis introduced the Lummis-Gillibrand Payment Stablecoin Act in April 2024, aiming to establish a regulatory framework for stablecoins.
Senator Gillibrand emphasized the importance of stablecoin regulations, stating that they are critical for maintaining the US dollar’s dominance in the global economy. Former House Speaker Paul Ryan echoed these sentiments in June, arguing that stablecoins could help alleviate the national debt crisis while strengthening the dollar’s role as the global reserve currency.
Following Ryan’s remarks, Senator Bill Hagerty introduced the Clarity for Payment Stablecoins Act in October. The bill proposes a comprehensive framework for regulating stablecoins, including state-level oversight for issuers with less than $10 billion in market capitalization.
Stablecoins in 2025: A Growing Market
Industry experts predict significant growth in the stablecoin sector. Guy Young, founder of Ethena, forecasts a market capitalization of $300 billion by 2025, driven by leaders like Circle’s USDC and Tether’s USDt.
Deng Chao, CEO of institutional asset manager HashKey Capital, noted that stablecoins are a key area of focus for venture capitalists. He highlighted their potential to provide banking services to unbanked populations in emerging markets, further driving demand for this digital asset class.
