A naukri.com initiative
Coindoo
3w
336
Image Credit: Coindoo
U.S. Treasury Secretary Bessent Says Stablecoins Could Lower U.S. Debt Costs
- U.S. Treasury Secretary Bessent believes stablecoins could lower U.S. debt costs by leveraging a forecasted $3.7 trillion stablecoin market by 2030.
- The GENIUS Act, supported by a bipartisan coalition, aims to establish clear standards for reserves, audits, and licensing to accelerate stablecoin growth.
- Bessent highlighted the mutual benefits for stablecoin issuers, consumers, and the U.S. Treasury by requiring payment stablecoins to be backed by short-term U.S. Treasury securities.
- The act could boost demand for government bonds as the stablecoin market grows, improving financing conditions for federal debt.
- The GENIUS Act is expected to enhance operational certainty for stablecoin issuers, provide consumer protections, and encourage broader institutional adoption.
- By directing more capital into short-dated Treasuries, the law could stabilize funding markets and ease pressure on the federal balance sheet.
- The U.S. Treasury is prepared to support the transition if Congress swiftly moves the bill forward for approval.
- The GENIUS Act signifies a major step toward integrating blockchain finance into traditional monetary infrastructure, potentially reshaping crypto markets and U.S. fiscal policy.
Read Full Article
20 Likes
For uninterrupted reading, download the app