The post How the US Plans to Use Stablecoins to Fund Its Debt appeared on BitcoinEthereumNews.com.

Bessent said that stablecoin issuers, particularly those backed by US Treasuries, could evolve into notable buyers of government securities He believes that the implementation of the GENIUS Act is a win-win-win situation for everyone involved, including stablecoin users, stablecoin issuers, and the US Treasury Department In June, Bessent conservatively estimated that the stablecoin demand for Treasuries could reach $2 trillion US Treasury Secretary Scott Bessent has pointed out the rising influence of the stablecoin industry in addressing the country’s escalating government debt, as reported by Financial Times.  He highlighted how stablecoin issuers, particularly those backed by US Treasuries, could evolve into notable buyers of government securities, providing a new funding channel for debt financing.  Bessent has also been in talks with major stablecoin companies like Tether and Circle regarding their holdings of government debt. The newly passed GENIUS Act mandates that US dollar-pegged stablecoins be fully backed by secure assets such as short-term Treasury bills. The goal is to provide both regulatory clarity for the stablecoin industry and a new source of fiscal utility for the government. Related: U.S. Treasury Clarifies Position on Strategic Bitcoin Reserve Plans A few days ago on X, while mentioning the GENIUS Act, Bessent stated that “stablecoins will expand dollar access for billions across the globe and lead to a surge in demand for US Treasuries, which back stablecoins.” He believes that the implementation of the GENIUS Act is a win-win-win situation for everyone involved, including stablecoin users, stablecoin issuers, and the US Treasury Department. In June, Bessent conservatively estimated that the stablecoin demand for Treasuries could reach $2 trillion, with optimistic projections hitting as high as $3.7 trillion by the end of the decade. To put things in some perspective, Tether (USDT) already holds over $100 billion in Treasury bills, making it one of…

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Filed under: News - @ August 20, 2025 11:26 pm