CoinVoice has learned that the GENIUS bill passed in the U.S. Senate this week, making stablecoins a potential important source of funding for the U.S. government, and it could even become a new tool for U.S. Treasury Secretary Becerra to address the country's deficit. Becerra previously expressed appreciation for the GENIUS bill 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. Becerra had earlier indicated to the U.S. House Financial Services Committee in May that some speculate the stablecoin market's demand for U.S. government securities 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 may introduce additional risks, as the extra demand for stablecoins will take time to develop, while the U.S. Treasury needs 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. [Original link]
