US Treasury Secretary Scott Bessent says digital belongings could create a $2 trillion demand for US Treasuries within the coming years.
In an look earlier than a Congressional Home Committee Tuesday morning targeted on the worldwide monetary system, Bessent says the US ought to take a worldwide management position on digital belongings.
“We consider that america must be the premier vacation spot for digital belongings, and, as members of this committee and the Senate try to do, create good market construction round that in order that US finest practices are used world wide.”
He additionally says that the crypto market could give US Treasuries a large demand increase.
“Digital belongings are an essential supply of innovation that may drive utilization of the US greenback world wide, as with stablecoin laws. There may be hypothesis that there could also be as much as $2 trillion of demand over the following few years for US authorities securities from digital belongings.”
Final month, veteran macro investor Luke Gromen defined that Bitcoin (BTC) can affect demand for US Treasuries. In response to Gromen, a Bitcoin bull market usually will increase demand for dollar-pegged crypto belongings referred to as stablecoins.
Stablecoin issuers equivalent to Tether and Circle predominantly depend on Treasury payments to again their cash on a 1:1 foundation. As of December 2024, Tether has invested over $94.47 billion in T-bills to again USDT. Circle owns $22.047 billion price of T-bills as of February of this yr to again its stablecoin, USDC.
In the meantime, two stablecoin payments making their manner by Congress, the STABLE Act of 2025 and the GENIUS Act of 2025, require issuers to spend money on T-bills and different real-world belongings to again their cash.
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