A flood of capital could head into U.S. government debt markets following the approval of the GENIUS Act, according to Treasury Deputy Secretary Michael Faulkender.
The legislation, recently signed into law by President Trump, mandates that stablecoins—digital currencies pegged to the dollar—must be backed one-to-one by liquid assets, primarily cash or short-term U.S. Treasuries.
Faulkender told Bloomberg that this clarity could dramatically reshape global finance. With rules now in place, both domestic and international players may adopt stablecoins more broadly for payments and invoicing, knowing each token is backed by U.S. government debt.
The result? A potentially massive wave of demand for Treasury bills.
He added that stablecoins’ near-instant settlement speeds and lower costs make them a natural upgrade over traditional cross-border transfers, which often take days. If global trade increasingly relies on dollar-backed digital assets, Faulkender believes it could generate “trillions” in new demand for Treasuries.
Kosta Gushterov
Reporter at Coindoo
Kosta joined the team in 2021 and quickly established himself with his thirst for knowledge, incredible dedication, and analytical thinking. He not only covers a wide range of current topics, but also writes excellent reviews, PR articles, and educational materials. His articles are also quoted by other news agencies.
Source: https://coindoo.com/stablecoin-law-could-trigger-massive-inflows-into-u-s-treasuries-says-treasury-official/