Introducing the US Crypto News Morning Briefing, where you'll find a concise update on the key events in the crypto world for the day ahead.

Get ready for an insightful discussion on the increasing adoption of stablecoins over a cup of coffee. The rise of dollar-pegged digital assets has caught the attention of the US Treasury due to its significant growth.

Top Crypto News Headline: US Treasury Forecasts $2 Trillion Market Cap for Stablecoins by 2028

According to the US Treasury Borrowing Advisory Committee's Q1 2025 report, stablecoins are expected to reach a market capitalization of $2 trillion by 2028. Market dynamics and incentives are likely to drive this growth, with USD-pegged stablecoins currently dominating the market at 99%.

Tracy Jin, COO of MEXC exchange, believes that this milestone could be reached even earlier, possibly by 2026.

The US Treasury has proposed new regulations that would require stablecoin issuers to hold short-dated T-bills to strengthen the connection between stablecoin adoption and US Treasury bill demand. However, the Treasury also warned that the growth of stablecoins might lead retail banks to offer higher interest rates to depositors.

In light of these developments, renowned Bitcoin advocate Max Keiser expressed concerns about the expanding stablecoin market. He warned that increased stablecoin usage could devalue the US dollar, potentially impacting US debt levels.

Discussing the potential implications of stablecoins on the US dollar, Standard Chartered's Geoff Kendrick noted that the Treasury has adopted the $2 trillion stablecoin forecast. He anticipates a surge in stablecoin issuance following forthcoming US legislation, which may impact the US T-bill market.

Furthermore, Tether, the issuer of the largest stablecoin USDT, is contemplating launching a US-specific stablecoin by late 2025 or early 2026 to position stablecoins as strategic financial tools and boost the US as a global crypto leader.

With rising stablecoin adoption expected to enhance the credibility of cryptocurrencies, Bitcoin (BTC) could see increased liquidity as institutional investors shift towards crypto assets over traditional options.

Additional crypto news to track today includes Byte-Sized Alpha and a pre-market overview of various crypto equities like MicroStrategy, Coinbase Global, and more.