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A new "brainwave" from the U.S. Treasury!
The GENIUS Act was smoothly passed in the U.S. Senate this week, and stablecoins might just become the "money bag" for the U.S. government, potentially turning into a secret weapon for Treasury Secretary Yellen to address the deficit. Yellen has previously praised the GENIUS Act, stating that a regulated and continuously developing stablecoin market could provide new buyers for U.S. government debt, encouraging the private sector to purchase U.S. Treasury bonds. In May, she also revealed to the U.S. House Financial Services Committee that some speculate the demand for stablecoins in the U.S. government securities market could reach as high as $2 trillion in the coming years!
However, some analysts argue that the stablecoin industry is unlikely to solve the U.S. government's debt financing issues overnight, and it might even introduce new risks. After all, the additional demand for stablecoins will take time to develop, while the U.S. Treasury is set to issue a large amount of debt securities within a year. If any issues arise, and the Federal Reserve cannot lower interest rates, the U.S. deficit could "skyrocket"! Can stablecoins truly become the "savior" of U.S. finance? What will happen next? We will continue to follow this closely!
