Sen. Hagerty Suggests GENIUS Act Will ‘Extend Demand’ for US Treasuries
Sen. Bill Hagerty (R-TN) stated that the GENIUS Act will increase demand for U.S. Treasuries and strengthen the U.S. dollar as the world’s reserve currency. The bill, which has passed a key Senate vote, allows entities to issue stablecoins, requiring issuers to maintain reserves on a 1:1 basis with cash and U.S. Treasury bills as acceptable reserves. Citibank projects that stablecoin issuers could hold $1.2 trillion in U.S. Treasuries by 2030, potentially impacting markets and the global economy. Concerns include risks of market destabilization and concentration risk in the Treasury market. The Act may lead to increased demand for tokenized asset technology and improve confidence in stablecoins and the crypto market, positioning the U.S. as a leader in digital payments.
