U.S. Treasury Secretary Scott Bessent said that the expansion of stablecoins, supported by federal regulation, could reduce borrowing costs and ease long-term debt growth.
In a post on X, Bessent pointed to research forecasting a $3.7 trillion stablecoin market by 2030. He argued that the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act could significantly accelerate that growth by introducing clear standards for reserves, audits, and licensing.
He emphasized that the benefits would be mutual: “a win-win-win” for stablecoin issuers, consumers, and the U.S. Treasury. The core mechanism, he noted, is the requirement that payment stablecoins be backed by short-term U.S. Treasury securities. As the market grows, this reserve demand could lift appetite for government bonds, improving financing conditions for federal debt.
Regulatory Clarity Poised to Boost Adoption
The GENIUS Act — backed by a bipartisan coalition and President Donald Trump — aims to provide stablecoin issuers with operational certainty while improving consumer protections. It is expected to pave the way for broader institutional and commercial adoption.
By directing more capital into short-dated Treasuries through reserve mandates, Bessent said the law could “stabilize funding markets and relieve pressure on the federal balance sheet.” He added that the Treasury stands ready to support the transition, provided Congress moves quickly to send the bill to the president’s desk.
The GENIUS Act represents one of the most significant steps toward integrating blockchain finance into traditional monetary infrastructure, with the potential to reshape both crypto markets and U.S. fiscal policy.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/u-s-treasury-secretary-bessent-says-stablecoins-could-lower-u-s-debt-costs/