Stablecoin Issuers Poised to Become Largest Holders of US Treasuries
- Senator Bill Hagerty predicts stablecoin issuers will become the largest holders of US Treasuries.
- The GENIUS Act, introduced by Hagerty, aims to regulate stablecoins federally.
- Stablecoins are expected to be backed primarily by short-term US Treasuries or cash.
- The potential legislation requires a 1:1 asset backing for stablecoins.
- The bill is moving forward in Congress and could increase Treasury demand by over $1 trillion.
Senator Bill Hagerty anticipates that stablecoin issuers will hold significant amounts of US Treasuries as part of their reserve funds, following the passage of the GENIUS Act aimed at regulating these digital assets. The legislation mandates a 1:1 backing ratio, primarily with short-term Treasuries or cash.
Source (2.6)https://dailyhodl.com/2025/05/21/these-crypto-entities-will-be-the-largest-holders-of-us-treasuries-in-the-world-according-to-senator-hagerty/?rand=59076
