As of 2025, the total stablecoin market has grown to over $250 billion.
More than half of all stablecoin activity involves U.S.-based users, and approximately $120–$130 billion worth of stablecoins are estimated to be held by American consumers.

Yet, these assets are not protected by any government-backed insurance. If a stablecoin issuer collapses, individual holders could lose their funds—with no safety net.

This creates an urgent need for clear, enforceable protections to prevent a crisis and maintain public trust in the digital financial system.

Why This Matters

• The total stablecoin market has surpassed $250 billion as of 2025.
• Over half of all stablecoin activity involves U.S.-based users.
• An estimated $120–$130 billion in stablecoins are held by U.S. consumers.
• Stablecoin holders are not protected by FDIC insurance, even if reserves are held in FDIC-insured banks.
• If a stablecoin issuer fails, individual users could lose their funds with no government-backed safety net.
• The lack of protection poses serious risks to consumer confidence and financial stability.
• Robust oversight is urgently needed to safeguard billions in consumer assets and maintain trust in digital finance.

What Needs to Change

To close the remaining gaps in consumer protection and financial safety, I am calling on Congress and federal regulators to:

• Extend FDIC-style protections to stablecoin holders, ensuring digital dollar users have the same confidence and safeguards as traditional bank customers.
• Guarantee enforceable redemption rights for stablecoin holders, so users can always redeem tokens at face value—especially in times of market stress.
• Establish domestic oversight for foreign issuers offering stablecoins to U.S. consumers, ensuring regulatory accountability and enforcement.
• Introduce targeted protections for youth and new investors, including education initiatives, clear disclosure standards, and limits on exposure to high-risk stablecoin products.