Stephen Miran, a newly appointed Federal Reserve governor, highlighted the significant impact of stablecoins on U.S. monetary policy. In a recent speech, he projected that demand for dollar-tied stablecoins could reach between $1 trillion and $3 trillion by the end of the decade. This surge in demand will likely force the Fed to reconsider its approach, given the current outstanding Treasury bills total around $7 trillion. Miran emphasized that the potential influx of funds from stablecoins cannot be overlooked, especially as many users, particularly overseas, seek dollar-denominated assets. Miran downplayed concerns that stablecoins would siphon deposits from U.S. banks, noting that the recently proposed GENIUS Act does not allow for yield generation on these assets. He believes that most stablecoin demand will stem from regions lacking access to dollar savings instruments, ultimately strengthening the U.S. dollar. Miran argues that if a global shift occurs from foreign currencies into stablecoins, it could influence the Fed's mandates on price stability and employment. He also pointed out that stablecoins could help modernize the U.S. financial system, making dollar transactions easier both domestically and internationally. In related developments, the Digital Chamber, a crypto advocacy group, is pushing back against banking interests that seek a total ban on stablecoin yield. This comes amidst ongoing debates in Congress regarding the regulation of the crypto market, with the Senate's crypto market structure bill stalled due to disagreements over stablecoin yields. The Digital Chamber is advocating for some form of rewards for stablecoin activities while ensuring that these products do not directly compete with traditional bank deposits.