US Treasury Secretary Scott Bessent says digital belongings might create a $2 trillion demand for US Treasuries within the coming years.
In an look earlier than a Congressional Home Committee Tuesday morning centered on the worldwide monetary system, Bessent says the US ought to take a worldwide management function on digital belongings.
“We consider that america ought to be the premier vacation spot for digital belongings, and, as members of this committee and the Senate try to do, create good market construction round that in order that US finest practices are used around the globe.”
He additionally says that the crypto market might give US Treasuries an enormous demand enhance.
“Digital belongings are an essential supply of innovation that may drive utilization of the US greenback around the globe, as with stablecoin laws. There’s hypothesis that there could also be as much as $2 trillion of demand over the following few years for US authorities securities from digital belongings.”
Final month, veteran macro investor Luke Gromen explained that Bitcoin (BTC) can affect demand for US Treasuries. In keeping with Gromen, a Bitcoin bull market usually will increase demand for dollar-pegged crypto belongings generally known as stablecoins.
Stablecoin issuers reminiscent of Tether and Circle predominantly depend on Treasury payments to again their cash on a 1:1 foundation. As of December 2024, Tether has invested over $94.47 billion in T-bills to again USDT. Circle owns $22.047 billion price of T-bills as of February of this 12 months to again its stablecoin, USDC.
In the meantime, two stablecoin payments making their manner by way of Congress, the STABLE Act of 2025 and the GENIUS Act of 2025, require issuers to spend money on T-bills and different real-world belongings to again their cash.
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