From News To Moves
.png&w=3840&q=75)
The GENIUS Act turned stablecoin issuers into forced buyers of U.S. Treasuries. Here’s how investors can front-run the $1.2 trillion demand wave.
By William Bronson
President Trump has signed the GENIUS Act with rare bipartisan support. Buried inside is a provision that now allows hundreds of millions of people worldwide to indirectly purchase Treasury bills. In effect, Washington created a new shadow central bank, an alternative to the current banking system, powered not by governments but by private crypto issuers.
Stablecoins, digital tokens pegged to the dollar, are at the center. By mandating that U.S. stablecoins be backed 100% by Treasuries or cash equivalents, the law forces private issuers to become some of America’s largest Treasuries holders and future creditors. The quiet shift will reshape both crypto and sovereign debt markets.
The GENIUS Act did not just regulate stablecoins. It weaponized them. Foreign holdings of U.S. Treasuries have dropped from 23% in 2011 to just 6% by late 2024. The vacuum left behind was growing dangerous. Now, two crypto issuers (Tether and Circle) already hold more Treasury bills than Germany. If they maintain their allocations, the pair could hold more than $660 billion in Treasuries, nearly matching China’s $772 billion. That level of demand rewires global debt flows.
Over 600 million people worldwide already use stablecoins, often in countries plagued by inflation or currency collapse. Every Argentine fleeing the peso or Turk hedging against the lira can indirectly become a U.S. Treasury buyer through an American stablecoin.
Stablecoin transactions already surpassed Visa’s volume in 2024, showing the quick formation of a mainstream debt-distribution system. Treasury Secretary Scott Bessent has already signaled that stablecoins will be a cornerstone of government debt demand going forward.
The new law requires stablecoin issuers to hold Treasuries as collateral, making them perpetual forced buyers. As adoption spreads, Treasury demand rises automatically. The mechanism creates an asymmetric opportunity: investors who position ahead of the projected $1.2 trillion demand surge can capture the wave before it becomes consensus.
The GENIUS Act is fundamentally changing global debt markets by making U.S. stablecoin issuers perpetual buyers of Treasuries. This structural shift creates a built-in demand engine for bills and bonds while boosting firms tied to stablecoin infrastructure. Investors can position defensively in Treasuries while capturing growth upside through fintech and crypto rails.
The GENIUS Act hardwires demand for U.S. Treasuries by making stablecoin issuers perpetual buyers, turning cash-like instruments into strategic safe havens. Investors can front-run structural demand in the world’s most liquid defensive asset. Treasuries just gained a new, permanent buyer of significant size.
The French government's crisis just deepened, bond yields are climbing, and demographics are working against Europe. For U.S. investors, the trade is clear: own the American infrastructure and security plays that Europe cannot live without.
Starbucks is shuttering stores and cutting jobs, a clear signal that premium coffee and premium spending are cooling fast. Here’s where consumer spending is shifting for investors to benefit.
When states cut arts funding, it’s a signal of deeper budget stress. Here’s how you can rotate into resilient federal and private sectors before the next fiscal knife falls.
Next article
Congress is redrawing the rules of digital finance. With new crypto bills advancing and centralized oversight fading, investors face a choice: adapt to a decentralized future or get left behind. Here's how to position yourself.
By Joseph Sherman
Sign up to get our curated newsletter in your inbox.
