US Treasury Secretary Scott Bessent says digital property might create a $2 trillion demand for US Treasuries within the coming years.
In an look earlier than a Congressional Home Committee Tuesday morning targeted on the worldwide monetary system, Bessent says the US ought to take a world management position on digital property.
“We imagine that the USA ought to be the premier vacation spot for digital property, and, as members of this committee and the Senate try to do, create good market construction round that in order that US finest practices are used around the globe.”
He additionally says that the crypto market might give US Treasuries a large demand increase.
“Digital property are an necessary supply of innovation that may drive utilization of the US greenback around the globe, as with stablecoin laws. There may be hypothesis that there could also be as much as $2 trillion of demand over the subsequent few years for US authorities securities from digital property.”
Final month, veteran macro investor Luke Gromen explained that Bitcoin (BTC) can affect demand for US Treasuries. In keeping with Gromen, a Bitcoin bull market sometimes will increase demand for dollar-pegged crypto property generally known as stablecoins.
Stablecoin issuers resembling Tether and Circle predominantly depend on Treasury payments to again their cash on a 1:1 foundation. As of December 2024, Tether has invested over $94.47 billion in T-bills to again USDT. Circle owns $22.047 billion value of T-bills as of February of this yr to again its stablecoin, USDC.
In the meantime, two stablecoin payments making their means via Congress, the STABLE Act of 2025 and the GENIUS Act of 2025, require issuers to spend money on T-bills and different real-world property to again their cash.
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