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