- Arthur Hayes warns stablecoins will fuel US debt.
- He predicts $10 trillion in new Treasury buying power from banks.
- The Genius Act is headed to a vote in the House.
Washington’s love affair with stablecoins likely has more to do with keeping the government’s debt machine turning than revolutionising payments or empowering crypto users.
That’s the view of BitMEX co-founder Arthur Hayes, who argues the technology’s biggest beneficiaries won’t be the decentralised finance platforms that pioneered it, but “too-big-to-fail” Wall Street banks and the officials shaping US financial policy.
“The stablecoin Trojan horse is already inside the fortress,” Hayes wrote in a new blog post, arguing the same players will use them to bankroll the government’s ballooning deficits.
The surge in stablecoin adoption, backed by inbound legislation like the Genius Act, could unlock as much as $10 trillion in Treasury-buying power, he claims.
