Stablecoin issuers may soon hold up to $2 trillion in U.S. Treasuries.
New legislation aims to enforce full asset backing and AML rules.
Stablecoins could surpass China in U.S. Treasury holdings by 2030.
According to recent statements from Scott Bessent, former Treasury official and current CEO of Key Square Group, U.S. stablecoins may soon become a strong influence in the Treasury market. Speaking in an interview, Bessent revealed that stablecoin issuers could eventually infiltrate up to $2 trillion into U.S. Treasuries and short-term government bills. This probable shift comes amid growing federal efforts to regulate digital assets, aiming to retain crypto innovation within U.S. borders.
Federal Focus Shifts Toward Clear Digital Asset Rules
During the interview, Bessent said the current administration is taking serious steps to develop clear rules around digital assets. He explained that these efforts intend to prevent more companies from moving operations offshore. In his view, the lack of clarity in past years pushed several crypto firms abroad, weakening the country’s digital leadership.
https://twitter.com/FinanceLancelot/status/1926401746860912977
Now, the government is moving to reverse this trend by supporting legislation and regulatory clarity. These actions are expected to give stablecoins a more defined role within the broader economy. Additionally, strong anti-money laundering frameworks are being prioritized to align stablecoins with the country’s financial compliance standards.
Holdings Could Surpass Foreign Treasury Buyers
According to Bessent, the stablecoin sector currently holds around $300 billion in U.S. Treasuries. However, that figure could climb dramatically, reaching up to $2 trillion in the coming years. His projection aligns with a recent Citibank report cited by Senator Bill Hagerty. The report forecasted that stablecoin issuers could surpass foreign governments, including China, in Treasury holdings by 2030.
The expectation is that increased regulatory certainty will accelerate this shift. With more structured guidelines, stablecoins may increasingly hold U.S. government debt as collateral for their digital tokens. This transition may support U.S. dollar liquidity and deepen the demand for short-term federal securities.
GENIUS Act Pushes Toward Stablecoin Oversight
A new bill advancing through the Senate seeks to formalize regulation. Part of the broader GENIUS Act,the proposed legislation mandates full backing with safe and liquid assets. Treasury bills fall under that category, ensuring asset reliability and reducing systemic risk. The bill also includes strict compliance requirements.
These include anti-terror financing protocols and protections for holders during potential insolvency events. If passed, it would prioritize holders’ claims during liquidations and introduce transparency standards across issuers. The law would mark a shift in treating them as secure digital currency equivalents, built on national-level safeguards and oversight.
