US Treasuries Boosted by GENIUS Act

GENIUS Act to Boost U.S. Treasury Demand and Dollar Dominance

• The GENIUS Act mandates stablecoin reserves be backed 1:1 by cash or short-term U.S. Treasuries.
• Citibank projects stablecoin issuers could hold $1.2 trillion in Treasuries by 2030.
• Sen. Bill Hagerty claims the bill will enhance U.S. dollar’s global reserve status.
• Experts warn of potential concentration risks and “runs” on Treasuries if stablecoins lose investor confidence.
• The bill aims to provide regulatory clarity for the crypto industry.

The GENIUS Act requires stablecoin issuers to maintain a 1:1 reserve ratio with cash or short-term U.S. Treasuries, potentially leading them to hold $1.2 trillion in Treasuries by 2030, according to Citibank projections.