According to Deep Tide TechFlow, on May 24, U.S. Treasury Secretary Scott Bessent stated that stablecoins could bring $2 trillion in short-term demand for U.S. Treasury bonds and bills, far exceeding the current $300 billion.
Bessent reiterated the Trump administration's support for cryptocurrency innovation, criticizing the regulatory stance of the previous administration. He promised to encourage sustainable innovation through an improved regulatory framework.
Stablecoins like Tether (USDT) are usually backed 1:1 by fiat currencies such as the U.S. dollar and hold reserves in liquid assets. Their issuers are becoming significant buyers of U.S. debt instruments.
The U.S. Senate is preparing stablecoin regulatory legislation, which is expected to provide legal clarity and encourage institutional adoption. Market rumors suggest that Fidelity and JPMorgan may soon issue their own stablecoins.