NextFin news, on November 7, 2025, Federal Reserve Governor Stephen Miran delivered a keynote speech at the Harvard Club in New York City during an event sponsored by Bloccelerate VC, addressing the growing importance of stablecoins and cryptocurrencies in the U.S. financial ecosystem. Miran, a key architect of President Donald Trump's trade policies and Trump's first appointee to the Federal Reserve Board in his second term, articulated that the rapid adoption of stablecoins strengthens the Federal Reserve's case for lowering interest rates.
Miran observed that stablecoins, which represent digitally native dollar-pegged assets, are evolving beyond their pariah status into an "established and fast-growing part of the financial landscape," following the bipartisan passage of the GENIUS Act in July 2025. This legislation instituted a robust regulatory framework requiring stablecoin issuers domiciled in the U.S. to maintain full reserves in safe, liquid U.S. dollar-denominated assets. While acknowledging risks such as potential banking disintermediation and its effects on monetary policy transmission, Miran suggested that stablecoins' growth will likely pull savings into the U.S. economy, either from previously idle cash holdings or foreign investors seeking dollar exposure.
He highlighted Federal Reserve staff projections estimating stablecoin holdings could range between $1 trillion and $3 trillion by 2030. Given this scale, Miran argued that the influx of stablecoin funds effectively increases the pool of loanable funds, thus exerting downward pressure on interest rates. He further noted stablecoins do not provide yields and lack FDIC insurance, limiting their role as deposit substitutes domestically but fulfilling significant demand internationally, where dollar access might be constrained.
Aligned with President Trump's advocacy for embracing crypto innovation, Miran emphasized that stablecoins represent a transformative shift toward private-sector-driven money creation and dollar dominance, asserting the potential to enhance U.S. economic growth through increased demand for Treasury securities and dollar-denominated assets globally.
Transitioning to a broader economic outlook, Miran maintained that despite the ongoing technological disruptions—including AI—the Federal Reserve must stay focused on its dual mandate of price stability and maximum employment. He hinted that further interest rate reductions would be warranted to accommodate the new financial dynamics introduced by stablecoin adoption, enabling smoother business cycles and maintaining monetary policy effectiveness.
The significance of Miran's speech lies in recognizing stablecoins not only as a fintech innovation but as a formidable factor altering traditional monetary aggregates, banking sector intermediation, and capital flows. The evolving stablecoin market creates upward pressure on the demand for U.S. dollar assets but simultaneously challenges conventional monetary policy tools, calling for adaptive strategies by the Federal Reserve.
From a policy perspective, the GENIUS Act represents a turning point by legitimizing stablecoins within a regulated framework, which helps mitigate systemic risks and establishes investor and consumer protections that support broader adoption. However, the shift of funds from traditional deposits to stablecoins threatens to alter bank deposit bases, potentially impacting banks' lending capacities and interest rate pass-through mechanisms.
In the context of U.S. macroeconomic policy under President Donald Trump's administration, which has persistently urged the Fed to lower rates, Miran’s stance resonates with the ongoing political pressure and evolving market conditions. Lower interest rates could spur investment and consumption, offsetting potential liquidity constraints introduced by banking disintermediation and encouraging the integration of digital assets into the real economy.
Looking ahead, the stablecoin market’s projected growth trajectory suggests accelerating digital dollar adoption worldwide, especially in emerging markets with constrained access to U.S. currency. This trend could strengthen the U.S. dollar’s global reserve status but also complicate the Fed’s influence over domestic monetary aggregates and credit conditions. Financial institutions may need to innovate digital product offerings and adapt risk management practices to remain competitive and aligned with the new monetary landscape shaped by stablecoins.
Moreover, the interplay between stablecoins and artificial intelligence-driven fintech innovations portends further complexity and growth potential in the payments and lending sectors. While Miran cautiously refrained from pronouncing a “new industrial revolution,” he acknowledged ongoing improvements in productivity metrics and exhorted continued technological innovation to sustain growth momentum.
In sum, Governor Miran’s insights underline a critical inflection point for U.S. monetary policy frameworks as stablecoin integration scales. The need for calibrated rate cuts, regulatory vigilance, and strategic adaptation to digital financial ecosystems will be paramount to harness stablecoins’ benefits while safeguarding economic stability. This evolving dynamic warrants close monitoring by policymakers, market participants, and international stakeholders keen on the future trajectory of digital finance and monetary policy.
According to American Banker, Miran’s perspective on stablecoins reflects a growing consensus that digital currencies are reshaping traditional finance, necessitating a rethinking of interest rate strategies within the Federal Reserve System under the Trump administration's economic agenda.
