Stablecoin Market Booms on U.S. Regulation, USDC Gains Ground: JPMorgan

JPMorgan analysts say the U.S. GENIUS Act has helped propel stablecoin adoption, driving a 42% year-to-date growth in the market and allowing Circle’s USDC to chip away at Tether’s dominance.

According to the report, the stablecoin market now stands at nearly $300 billion, almost double the 21% growth of the broader crypto ecosystem in 2025. Stablecoins represent roughly 7.5% of the $3.8 trillion total crypto market cap and about 1.3% of the U.S. M2 money supply, up 35 basis points since the start of the year.

Stablecoins—cryptocurrencies pegged to assets like the U.S. dollar or gold—play a key role in payments, trading, and international money transfers. Since the GENIUS Act’s passage on July 18, the market cap of stablecoins has climbed 19%, highlighting how regulation is accelerating adoption.

Circle’s USDC has been the biggest beneficiary, with its market cap jumping from $61.5 billion at the end of June to $73.7 billion by late September, capturing 25.5% of the stablecoin market, up roughly 400 basis points in 2025.

Tether (USDT), meanwhile, has seen its dominance fall from 67.5% at the start of the year to 60.4%, while Ethena’s synthetic stablecoin USDe has grown to $14.4 billion, securing a 5% market share.

Historically, USDT and USDC have formed a duopoly in the dollar stablecoin space, but JPMorgan notes that USDC now holds nearly 30% of the combined share, up from 24% at the start of the year. Analysts suggest that the GENIUS Act could further tilt momentum toward Circle, though a more fragmented market may benefit platforms like Bullish (BLSH), which provide liquidity services for a growing roster of stablecoin issuers.