The Rise of Stablecoins

The 7th largest buyer of US Treasuries in 2024 was Tether, a crypto company responsible for the stablecoin USDT. Alternatively David Sacks, head of Crypto and AI committee within the United States, has prioritized creating clear regulatory frameworks for stablecoins as the first priority of the new US administration. The new Administration is moving swiftly with implementation of their plans. Already this year the U.S. Senate Banking Committee has approved initial legislation focused specifically on the regulation of Stablecoins, before a Bitcoin reserve.

Stablecoin Usage isn’t tied to Asset Speculation

Migrant workers and international families are finding relief through digital currencies that dramatically undercut traditional money transfer fees. Where Western Union and international banks once charged up to 10% in transfer fees, stablecoins are slashing those costs to less than 1%.

“For someone sending $500 home to their family, that’s the difference between $50 lost in fees or keeping nearly all of their hard-earned money,” said Maria Rodriguez, a financial inclusion expert.

By the Numbers:

• Traditional Transfer Fees: 5-10% per transaction
• Stablecoin Transfer Costs: Less than 1%
• Average Savings: Up to 90% in transfer expenses
• Global Remittance Market: Estimated $796 billion in 2024

Trump Administration Takes Strategic Stance

The Trump administration has been very vocal on stablecoin regulation as the first priority in regards to regulation related to crypto. Head of Trump’s Crypto Admin David Sacks has stated multiple times regulatory clarity for stablecoins is a top priority. “Our goal is to create a robust, transparent framework that leverages the potential of digital currencies,” Sacks stated in a recent press conference.

At the 2025 Americas Digital Assets Conference, U.S. Treasury Secretary Janet Yellen highlighted the strategic importance of these digital assets. “Stablecoins represent more than a technological innovation,” Yellen declared. “They’re a critical tool for financial inclusion and economic empowerment.”

Key Developments

• Tether has emerged as the 7th largest buyer of US Treasuries in 2024
• US Senate Banking Committee has approved a comprehensive stablecoin regulatory bill
• Multiple administration officials view stablecoins as a strategic tool to reinforce the US dollar’s global reserve status

Economic Implications Spark Debate

The rise of stablecoins could be a game-changer for global economic dynamics,” noted economic researcher Dr. James Chen. “They represent more than just a technological innovation – they’re a potential solution to complex financial challenges. Stablecoins offer unique advantages, particularly for populations traditionally excluded from global financial systems. By providing a dollar-denominated digital asset, these cryptocurrencies create new pathways for financial inclusion.

How Stablecoins Work

• Backed by reserve assets, primarily US Treasuries
• Provide dual revenue streams through transaction fees and Treasury yields
• Offer an alternative to direct dollar holdings for international users

Looking Ahead

As regulatory frameworks continue to evolve, stablecoins stand at the intersection of technological innovation and financial strategy. The next 12-18 months will be critical in determining their long-term impact on global financial markets.