How Stablecoins Back US Debt With $109B in T-Bill Buys
The post How Stablecoins Back US Debt With $109B in T-Bill Buys appeared on BitcoinEthereumNews.com.
The stablecoin market cap jumped from $200 billion to $309 billion between July and November 2025, prompting issuers to purchase $109 billion in US Treasury bills to comply with a federal mandate embedded in the GENIUS Act. This dramatic growth marks a significant shift in how the US government finances its operations. The shift transfers regulatory oversight for stablecoins from the Federal Reserve to the Treasury Department through a new digital dollar policy. Sponsored Sponsored Legislative Framework Drives Treasury Demand On July 18, 2025, President Donald Trump signed the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, creating the first federal rules for payment stablecoins. The law requires all stablecoin issuers to back tokens 100% with US dollars or short-term Treasury bills. It excludes corporate bonds and bank deposits. This key provision converts stablecoins into engines for government debt purchases. Each time a stablecoin is issued, the company must simultaneously purchase Treasury securities of equal value. As a result, there is an automatic, ongoing demand for federal debt outside traditional bond auctions. Analyst Shanaka Anslem Perera explained the implications in a detailed analysis, noting that this requirement is tucked away within 47 pages of the technical regulation. The European Central Bank reported in November 2025 that the global stablecoin market surpassed $280 billion, led by Tether at $184 billion and USD Coin at $75 billion in market capitalization. EVERYONE THOUGHT THE GENIUS ACT WAS ABOUT CRYPTO REGULATION. THE DATA JUST PROVED IT WAS SOMETHING ELSE ENTIRELY. Four months ago, Trump signed a law that made headlines for 48 hours. Tech regulation. Stablecoin rules. The market moved on. But the numbers that just came out… pic.twitter.com/133ihg1BQq — Shanaka Anslem Perera ⚡ (@shanaka86) November 24, 2025 Treasury Secretary Scott Bessent underscored the Act’s strategic significance in his official statement after its passage.…
Filed under: News - @ November 25, 2025 6:23 am