Sen. Bill Hagerty recently advocated that the GENIUS Act could significantly boost demand for U.S. Treasuries and solidify the dollar's status as the world's reserve currency. The bill mandates that stablecoin reserves must be backed on a 1:1 basis by cash or short-term U.S. Treasuries. During an interview, Hagerty noted predictions from Citibank that stablecoin issuers could hold up to $1.2 trillion in Treasuries by 2030. While Hagerty emphasized that the act would enhance the stability of the U.S. financial system, some analysts warned of potential risks such as concentration risk and the possibility of mass withdrawals from Treasuries if confidence in stablecoins falters. Despite these concerns, the legislation has gained momentum in the Senate, likely leading to a favorable regulatory landscape for stablecoins and increasing their adoption. Some experts believe that the act may create a notable shift toward tokenized asset technologies and enhance the regulation of the crypto market.

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