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

According to Mars Finance, after the GENIUS Act was 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 Bassant to offset the country's deficit. Bassant previously expressed appreciation for the GENIUS Act, 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. Bassant 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 introduce additional risks, as additional stablecoin demand requires 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 become uncontrollable.