U.S. Secretary of the Treasury: The GENIUS bill could help fall public debt

The U.S. Secretary of the Treasury, Mr. Scott Bessent, stated on June 17 that stablecoin could help fall the federal borrowing costs and slow down the rate of national debt increase if Congress passes the "Guidance and Establishment of National Innovation for U.S. Stablecoin" (GENIUS) and submits it to the President.

In a post on social media X, Mr. Bessent cited research forecasting that the stablecoin market could reach a scale of 3.7 trillion USD by 2030, while emphasizing that the legislation would promote this expansion by establishing regulations on reserves, audits, and licensing.

He calls this the "trilateral win-win scenario" – for the issuer, the Ministry of Fintech, and the consumers – because a large portion of the reserves for payment stablecoins will be invested in short-term U.S. Treasury bonds, thereby boosting demand for this type of security and alleviating financial pressure on the government.