EddieJayonCrypto
21 May 25
Senator Bill Hagerty (R-TN) stated that stablecoin issuers will likely become the largest holders of US Treasuries by purchasing them as reserves to keep stablecoins pegged to the dollar. He introduced the GENIUS Act, a bipartisan bill under congressional debate, which aims to establish federal regu...
Senator Bill Hagerty predicts that stablecoin issuers will emerge as the largest holders of US Treasuries by backing their digital assets with high-quality short-term assets to maintain dollar pegs.Hagerty introduced the GENIUS Act, a bipartisan bill aiming to federally regulate stablecoins. The legislation requires issuers to hold a 1:1 asset backing ratio, primarily composed of US currency, insured deposits, or Treasury securities.The GENIUS Act seeks to modernize the US payment system, protect consumers, strengthen US dollar dominance, and increase demand for US Treasuries by over $1 trillion. Furthermore, it aims to foster innovation within the domestic digital asset ecosystem.In a CNBC interview, Hagerty emphasized that stablecoin issuers will buy massive amounts of US Treasuries as reserve funds to ensure their digital assets stay pegged to the dollar, stating, "Stablecoin issuers will be the largest holders of US Treasuries in the world."The bill is currently under debate in Congress and mandates that reserves backing stablecoins consist of short-term, high-quality assets such as US Treasuries or cash. Hagerty celebrated recent legislative progress, highlighting the financial and technological benefits tied to the act.Overall, the GENIUS Act represents a pivotal step toward integrating stablecoins into the regulated financial landscape while supporting the US Treasury market and digital payment innovation.