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Analysis: Stablecoins may become a new tool for US Treasury Secretary Yellen to address deficit
Summary: Following the passage of the GENIUS Act in the US Senate this week, stablecoins could potentially become a significant source of funding for the US government, and even a new tool for US Treasury Secretary Yellen to address the country's deficit. Yellen has previously expressed appreciation for the GENIUS Act, stating that a regulated and ...
Following the passage of the GENIUS Act in the US Senate this week, stablecoins could potentially become a significant source of funding for the US government, and even a new tool for US Treasury Secretary Yellen to address the country's deficit. Yellen has previously expressed appreciation for the GENIUS Act, stating that a regulated and evolving stablecoin market could create new buyers for US government debt, boosting demand from the private sector. Yellen had previously testified before the US House Financial Services Committee in May, speculating that the stablecoin market's demand for US government securities in the coming years could reach as high as $2 trillion. However, analysts believe that the stablecoin industry is unlikely to completely solve the US government's debt financing issues, and may bring additional risks as the demand for stablecoins needs time to develop, while the US Treasury needs to issue a large amount of debt securities within a year. If issues arise leading to the Federal Reserve being unable to lower interest rates, the US deficit could spiral out of control. (CNBC)
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Link: Analysis: Stablecoins may become a new tool for US Treasury Secretary Yellen to address deficit [Copy]
