Analysis: Stablecoins may become a new tool for US Treasury Secretary Bessant to make up for the deficit

Odaily Planet Daily News After the GENIUS Act was passed by the U.S. Senate this week, stablecoins have the potential to become an important source of funding for the U.S. government, and may even become a new tool for U.S. Treasury Secretary Bessant to make up for the country's deficit. Bessant previously praised the GENIUS Act and said that a regulated and growing stablecoin market could create new buyers for U.S. government debt and drive private sector demand for U.S. Treasuries. Bessant previously told the U.S. House of Representatives Financial Services Committee in May that some speculate that the stablecoin market's demand for U.S. government securities could be as high as $2 trillion in the next few years. However, analysts believe that the stablecoin industry is unlikely to completely solve the U.S. government's debt financing problem, and may bring additional risks, because the additional demand for stablecoins takes time to develop, and the U.S. Treasury has to issue a large number of debt securities within a year. If problems arise and the Federal Reserve cannot cut interest rates, the U.S. deficit will get out of control. (CNBC)