Besenet is optimistic about the stablecoin market and may become a new tool for financing the U.S. deficit.

SignatureVerifier · 2025-06-21T14:00:32+00:00

U.S. Treasury Secretary Becerra stated that stablecoins could become a new tool to compensate for the deficit, with future demand for U.S. bonds expected to reach $2 trillion. However, analysts point out that stablecoins cannot fully address the debt financing issue and may bring additional risks.

SignatureVerifier

2025-06-21 14:00:32

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[Coin World] Coin World reported on June 21 that stablecoins may become a new tool for U.S. Treasury Secretary Basant to offset the country’s deficit. Basant previously expressed appreciation for the GENIUS Act, stating that a regulated and growing stablecoin market could create new buyers for U.S. government debt, driving private sector demand for U.S. Treasuries. In May, Basant told the U.S. House Financial Services Committee that some speculate the demand for U.S. government securities from the stablecoin market could reach $2 trillion in the coming years. However, analysts believe that the stablecoin industry is unlikely to fully resolve the U.S. government’s debt financing issues and may introduce additional risks, as the extra demand for stablecoins will take time to develop, while the U.S. Treasury may need to issue a significant amount of debt securities within a year. If problems arise that prevent the Federal Reserve from lowering interest rates, the U.S. deficit could spiral out of control.

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