Stablecoin Market Surges in 2025 Amid Regulatory Advances and Mainstream Adoption
The stablecoin market capitalization rose 49% in 2025, reaching about $306 billion by the end of November. This growth coincided with significant regulatory and industry developments throughout the year.
In July 2025, the GENIUS Act was signed into law, establishing the first federal regulatory framework for stablecoins in the United States. The Act originated with Senator Bill Haggerty in May, cleared the Senate in June, and was intended to provide much-needed market clarity. Following the passage of the GENIUS Act, the Office of the Comptroller of the Currency (OCC) granted provisional banking charters to several major stablecoin issuers, including Circle, Ripple, Paxos, BitGo, and Fidelity, signaling deeper integration of stablecoins into mainstream finance.
In December 2025, FDIC Acting Chair Travis Hill stated that the agency is actively working to implement the GENIUS Act, with an application framework expected later that month and prudential standards anticipated early the following year.
Industry adoption also advanced. Circle’s stablecoin CRCL made a notable debut on the NYSE on June 30, 2025, with trading halted three times in the first hour and its price more than tripling. PayPal expanded its PYUSD stablecoin support to the Tron and Avalanche networks in September, with circulating PYUSD surpassing $1 billion. Additionally, Stripe announced plans in May to support stablecoin transaction rails in over 100 countries.
However, not all developments were positive. In November 2025, S&P Global Ratings downgraded Tether’s USDT to a 'weak' rating due to its exposure to Bitcoin reserves. This came after prior concerns about commercial paper reserves had reportedly been resolved by 2022.
