The global cryptocurrency market is set to undergo major changes in the coming year, with the US leading the way. The US could use stablecoins to strengthen the dollar, as many are backed by US Treasuries. For example, 86% of USDC collateral was in US Treasuries as of September. As stablecoin issuance grows, demand for Treasuries will also increase, which generally strengthens the dollar. Trump, who is anti-CBDC, could expand stablecoins to further support the dollar. The transition to a US-led cryptocurrency market could accelerate, especially after Republicans win the White House and gain majorities in both the Senate and the House. This could lead to stronger industry policies, with the FIT21 bill gaining momentum. With SEC Chairman Gary Gensler stepping down, a crypto-friendly successor could accelerate these changes.
