Analysis: Stablecoins may become a new tool for US Treasury Secretary Bessant to make up for the deficit

Planet Daily News: After the GENIUS bill was passed in the U.S. Senate this week, stablecoins could potentially become an important funding source for the U.S. government, and might even become a new tool for Treasury Secretary Bassant to offset the country's deficit. Bassant previously expressed appreciation for the GENIUS bill, stating that a regulated and continuously developing stablecoin market could create new buyers for U.S. government debt and drive private sector demand for U.S. Treasury bonds. Bassant previously told the U.S. House Financial Services Committee in May that some speculate the stablecoin market's demand for U.S. government securities could reach up to $2 trillion in the coming years. However, analysts believe the stablecoin industry is unlikely to completely solve the U.S. government's debt financing issues and may bring additional risks, as additional stablecoin demand requires time to develop, while the U.S. Treasury needs to issue a large number of debt securities within a year. If problems arise that prevent the Federal Reserve from lowering interest rates, the U.S. deficit could spiral out of control. (CNBC)