U.S. Treasury Secretary Scott Bessent said the administration regards passage of the GENIUS Act as “essential to securing American leadership in digital assets,” arguing that regulated stablecoins could widen access to the dollar for billions of people and generate a “surge in demand for U.S. Treasuries.” His remarks follow private discussions with issuers Tether and Circle on how the government might tailor short-term debt issuance to meet rising demand from the sector, according to the Financial Times.
Bessent has signalled to Wall Street that he expects the stablecoin market to reach roughly $2 trillion and become a significant buyer of government securities, potentially easing concerns about financing the expanding federal deficit. Stablecoins are typically backed one-for-one by cash or Treasury bills, meaning each new token issued translates into incremental demand for the underlying bonds.
Goldman Sachs echoed the…
