GENIUS Act Sparks Debate Over Stablecoins’ Role in U.S. Debt Markets
Analyst Shanaka Anslem Perera contends the GENIUS Act transforms stablecoins into mandatory buyers of U.S. Treasuries. By requiring 100% reserves in short-term debt or cash, the legislation effectively turns dollar-pegged tokens into a privatized quantitative easing tool—one operating beyond Federal Reserve oversight.
Treasury Secretary Scott Bessent’s projections lend credence to the theory. With stablecoin markets poised to hit $2-3.7 trillion by 2030, issuers could become among the largest holders of U.S. government debt. JPMorgan’s recent acceptance of Bitcoin and Ether as collateral further signals Wall Street’s adaptation to this Treasury-influenced framework.
Critics dismiss the claims as overblown, but emerging markets’ reliance on stablecoins for dollar stability adds weight to Perera’s argument. The debate underscores how crypto regulation increasingly intersects with macroeconomic policy.
