US Fiscal Strategy Leverages Stablecoins to Manage Debt Surge

The US Congress has passed the $3.3 trillion 'One Big Beautiful Bill' (OBBBA), a sweeping fiscal package that raises the debt ceiling by $5 trillion and is projected to add $3.3 trillion to the deficit over the next decade. This aggressive spending comes as total US debt is expected to reach $40 trillion in 2025—a NEAR $17 trillion increase since 2020.

Concurrently, the GENIUS Act mandates that stablecoins be fully backed by US dollars or short-term Treasuries, creating a structural demand for government debt. This dual approach effectively engineers a fiscal loop: while OBBBA expands spending, the GENIUS Act ensures stablecoin issuers absorb Treasury issuance, providing a stealth mechanism to support bond markets.

The strategic alignment suggests a broader pivot toward leveraging cryptocurrency infrastructure for macroeconomic management. Stablecoins—particularly those pegged 1:1 to USD—now serve as conduits for debt monetization, blurring traditional boundaries between fiscal policy and digital asset markets.