EddieJayonCrypto
22 May 25
Senator Bill Hagerty (R-TN) predicts that stablecoin issuers will become the largest holders of US Treasuries by purchasing them as reserves to keep their digital assets pegged to the dollar. He introduced the GENIUS Act, aiming to establish federal regulations for stablecoins, which is currently un...
Senator Bill Hagerty predicts that stablecoin issuers will become the largest holders of US Treasuries by backing their digital assets with high-quality short-term assets. He has introduced the GENIUS Act to establish federal regulations for stablecoins, aiming to modernize the US payment system and maintain dollar dominance.The GENIUS Act requires stablecoin issuers to maintain a 1:1 asset backing, primarily consisting of US currency, insured deposits, and Treasury securities. This legislation is currently advancing in Congress and promises to increase demand for US Treasuries by more than $1 trillion.Hagerty emphasizes that stablecoin issuers will hold significant amounts of US Treasuries to ensure their digital assets stay pegged to the dollar. According to him, the reserves will not be backed by equities but by cash and short-term Treasuries.The bill aims to bring the US payment system into the 21st century by creating a secure and efficient digital payment framework. It will protect consumers, boost Treasury demand, and foster innovation in the digital asset space within the United States.Overall, the GENIUS Act marks a significant bipartisan effort to regulate stablecoins, which could reshape the intersection of digital currencies and traditional financial markets.