Stablecoins will overtake Bitcoin in 2025 and how will this impact the USD?

US Vice President JD Vance was the first person in this position to speak to the bitcoin community, affirming his support for crypto. Vance did not believe stablecoins threaten the US dollar. On the contrary, he believed that stablecoins are a lever for the strength of the US economy.

Bo Hines, a White House official in charge of the President's Digital Wealth Council, shared on the sidelines of the conference that the U.S. is simplifying its payment infrastructure to ensure the global dominance of the dollar for decades to come.

He added that integrating stablecoins into the US financial system could unlock global demand for trillions of dollars worth of US government bonds.

However, this ambition depends on the passage of the GENIUS Act, a Senate bill that would establish the first comprehensive regulatory framework for stablecoin issuers.

Republican Senator Cynthia Lummis announced at Bitcoin 2025 that the bill will be put to a final vote next Monday, after weeks of negotiations with Democrats. Lummis stated that if passed, it would be the first law on digital assets approved by the U.S. Senate.

Dave Ripley, CEO of Kraken, who is advising lawmakers, believes this bill is a key element in bringing financial institutions into the digital asset ecosystem.

However, some key terms are still under discussion, including whether yields from stablecoins can be shared with users.

Vlad Tenev, CEO of Robinhood, believes that the SEC (U.S. Securities and Exchange Commission) can accomplish this on its own without Congress passing new legislation.

The Bitcoin 2025 event clearly demonstrates the interest of US policymakers in the potential of stablecoins and their efforts to establish a legal framework for integrating them into the financial system, thereby strengthening the role of the US dollar.