Scott Bessent Projects $2 Trillion Stablecoin Surge Into U.S. Treasuries

• Stablecoin issuers could expand Treasury holdings from $300 billion to $2 trillion.
• The GENIUS Act suggests full asset backing and AML standards, integrating stablecoins into the regulated financial system.

A recent projection by Scott Bessent, U.S. Treasury Secretary and current CEO of Key Square Group, estimates that stablecoin issuers could inject up to $2 trillion into the U.S. Treasury market. This forecast points to a significant shift in financial markets, driven by digital assets and new regulatory developments.

During a recent interview, Bessent stated that the current U.S. administration is prioritizing the development of clear digital asset rules. According to him, these efforts aim to retain crypto-related businesses within the United States. He added that past regulatory uncertainty pushed many companies offshore, reducing the country’s leadership in financial innovation.

Bessent projected that stablecoin issuers may increase their holdings in U.S. Treasuries from $300 billion to $2 trillion. This shift could significantly impact demand for government debt instruments, including T-bills. Its proposal also fits with what many leading financial experts and lawmakers have suggested.

Senator Bill Hagerty cited a Citibank report that anticipates stablecoin issuers becoming the largest Treasury holders by 2030, surpassing foreign nations like China.

Lawmakers Push for New Stablecoin Legislation

Legislation aimed at regulating stablecoins is advancing through the U.S. Senate. The proposed law, part of the GENIUS Act, mandates full asset backing for all stablecoins issued in the country. This need involves maintaining at least some of the reserve in U.S. Treasury bills and other convenient safe investments. The bill also enforces strict anti-money laundering and anti-terror financing standards.

Due to stability, stablecoin holders would be first in line to get their money back if there’s a market disruption. It adds new measures to improve how transparent, how well investors are protected and how accountable the business is. The added rules are meant to guide the introduction of stablecoins into the wider financial system.

Industry Leaders Support Tokenization and Policy Progress

According to BlackRock CEO Larry Fink, tokenization will be a main component of future finance. According to Bessent, stablecoins could help the Treasury maintain stability of demand for its bills and bonds. If institutions and regulations help these coins, stablecoins may soon become approved digital versions of national currencies.

According to current reports, Treasuries are holding about $300 billion of stablecoins. Bessent thinks the new estimate represents a possible sixfold increase. When implemented, this advance might transform the U.S. debt market, strengthen the dollar internationally by using stablecoin infrastructure.

Highlighted Crypto News Today:

‌XRP Repeats Historical Pattern, Analysts Forecast $12–$46 Price Range