Fed Board Member Miran Warns of Risks From Rising Stablecoin Market

• The Fed estimates that the sector could reach $3 trillion by the end of the decade.
• Miran noted that this will affect monetary policy and demand for dollar assets.
• He emphasized that the new law on stablecoins does not pose a direct threat to the banking system.

Member of the Board of Governors of the U.S. Federal Reserve System Stephen Miran said that the development of the stablecoin market could change the balance of demand for dollar assets and impact monetary policy. According to Fed experts’ estimates, the volume of dollar-backed tokens may grow to $3 trillion by the end of the decade.

If this happens, the said asset class will exceed the current volumes of a number of segments of the US debt market.

Speaking at the BCVC 2025 Summit in New York, Miran noted that stablecoins are becoming a significant instrument of global dollar circulation. Especially in countries with limited access to traditional financial instruments.

He emphasized that the growing demand for such tokens strengthens the international influence of the U.S. currency. At the same time, such a trend simultaneously complicates the central bank’s liquidity management tasks.

He said the Fed will take this factor into account when making future rate and liquidity decisions.

He also noted that banks’ concerns about a possible outflow of deposits in favor of stablecoins are unlikely, since most of the demand is generated outside the United States. Miran emphasized that the new GENIUS sector regulation law does not provide for accrual of yield.

This, he argued, makes such instruments less competitive compared to bank deposits.

In addition, the official indicated that stablecoins could play a positive role in “resetting” the U.S. financial infrastructure. According to him, dollar-backed tokens can improve the system of storing and transferring funds, providing greater speed and transparency in transactions.

Stephen Miran was appointed to the Fed’s board by President Donald Trump in 2025. Previously, he served as an economic adviser in the administration of the head of state and worked in the private sector.

Recall, we wrote that on October 30, 2025, the Fed reduced the interest rate by 0.25%.