According to a June 21 report from CoinWorld, stablecoins may become a new tool for U.S. Treasury Secretary Bentsen to address the country's deficit. Bentsen previously expressed appreciation for the GENIUS Act and stated that a regulated and evolving stablecoin market could create new buyers for U.S. government debt, boosting private sector demand for U.S. Treasury bonds. Bentsen had previously indicated to the U.S. House Financial Services Committee in May that some speculate the demand for U.S. government securities from the stablecoin market could reach as high as $2 trillion in the coming years.
However, analysts believe that the stablecoin industry is unlikely to fully resolve the U.S. government's debt financing issues, and it may bring additional risks, as the extra demand for stablecoins will take time to develop. Meanwhile, the U.S. Treasury may need to issue a large amount of debt securities within a year. If problems arise that prevent the Federal Reserve from lowering interest rates, the U.S. deficit could spiral out of control.