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Monday Nov 10 2025 03:10
2 min
Stephen Miran, a US Federal Reserve Governor appointed by Donald Trump, stated at the BCVC summit in New York on Friday that dollar-pegged crypto tokens could be “putting downward pressure” on the neutral rate, or r-star, that neither stimulates nor impedes the economy. He further elaborated that if the neutral rate decreases, the central bank would likely respond by lowering its interest rate as well.
According to CoinGecko data, the total current market capitalization of all stablecoins stands at $310.7 million. Miran indicated that Federal Reserve research suggests the market has the potential to expand to up to $3 trillion in value over the next five years.
“My thesis is that stablecoins are already increasing demand for U.S. Treasury bills and other dollar-denominated liquid assets by purchasers outside the United States, and that this demand will continue growing,” Miran said. “Stablecoins may become a multitrillion-dollar elephant in the room for central bankers.”
Organizations, including the International Monetary Fund, have cautioned that stablecoins pose a threat to traditional financial assets and services due to their potential to compete for customers. US banking groups have also urged Congress to enhance oversight of yield-bearing stablecoins, arguing they could attract prospective bank users.
During his address, Miran commended the GENIUS Act for establishing clear guidelines and consumer protections. He emphasized that this regulatory framework will be instrumental in encouraging wider adoption of stablecoins.
“While I tend to view new regulations skeptically, I’m greatly encouraged by the GENIUS Act. This regulatory apparatus for stablecoins establishes a level of legitimacy and accountability congruent with holding traditional dollar assets,” he stated, adding, “For the purposes of monetary policy, the most important aspect of the GENIUS Act is that it requires U.S.-domiciled issuers to maintain reserves backed on at least a one-to-one basis in safe and liquid US dollar–denominated assets.”
Risk Warning: This article is provided for informational purposes only and does not constitute investment advice, investment research, or a recommendation to trade. The views expressed are those of the author and do not necessarily reflect the position of Markets.com. When considering shares, indices, forex (foreign exchange), and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and may not be suitable for all investors. Leveraged products can result in capital loss. Past performance is not indicative of future results. Before trading, ensure you fully understand the risks involved and consider your investment objectives and level of experience. Cryptocurrency CFD trading restrictions may apply depending on jurisdiction.
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