US Treasury Secretary Besant: Stablecoins may aid US debt financing, analysts warn of ongoing risks.

2025-06-21 13:48:28

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[Chain News] PANews, June 21 - According to reports, stablecoins may become a new tool for U.S. Treasury Secretary Brainerd to address the country’s deficit. Brainerd previously praised the GENIUS Act and stated that a regulated and evolving stablecoin market could create new buyers for U.S. government debt, driving private sector demand for U.S. Treasuries. In May, Brainerd had indicated to the U.S. House Financial Services Committee that some speculate the demand for U.S. government securities from the stablecoin market could reach as high as $2 trillion in the coming years.

However, analysis suggests that the stablecoin industry is unlikely to completely solve the U.S. government’s debt financing issues and may introduce additional risks, as the extra demand for stablecoins will take time to develop. Meanwhile, the U.S. Treasury may need to issue a large 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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