Under the Genius Act, stablecoin issuers must hold short-term Treasuries in their reserves. The Treasury market is the largest and deepest financial market in the world, but it’s also a fragile one.
In March 2020, a net increase in sales of Treasuries versus the prior month of less than $100 billion caused the entire market to seize up. What happens in a world where, as Treasury secretary Scott Bessent predicts, there are $2 trillion of stablecoins outstanding?
Meanwhile, as the stablecoin
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