Sen. Hagerty Suggests GENIUS Act Will ‘Extend Demand’ for US Treasuries

Republican Senator Bill Hagerty (R-TN) argued in an interview that the ingenious law would increase demand for US treasury and increase US dollar status as a world spare currency.

Speaking Squawk Box na CNBCHagerty explained that the bill is – which A key Senate voice has passed recently– You will establish a box through which entities can legally issue stablecoins.

And a key request account It is that any “permissible Paying Stabil Payment issuer” maintains reserves at least based on 1: 1, with the accepted reserves, including Gotovina and US Treasury Accounts (with a passing of no more than 93 days), money received in accordance with the purchase contracts or re -purchase contracts.

In her interview, Hagerty focused on Gotovina and US Treasury, informing the host Andrew Ross Sorkin that the reserves would not be allowed to include shares.

“There will be no shares, it will also be high quality, short -term assets […] Short -term American treasury or cash, “he said.” I think most of this will be US treasury. “

The more interesting, the reference is Hagerty Projections from Citibankwho suggest that by 2030, Stablecoin publishers could be the largest owners of American treasuries in the world.

“It will actually perpetuate the value of the dollar as a spare currency,” he said. “It will expand this momentum, it will extend the request for American treasures; it can like it a lot.”

In fact, Citibank’s research is estimated that Stablecoin publishers could hold US treasury of $ 1.2 trillion by 2030, which could deeply affect markets and global economy, experts say.

“If [stablecoin issuers] They had to make up for a significant part of the overall demand, then there is a risk that this could destabilize the US treasury market, “says Senior Trade Nation David Morrison, analyst for the market, saying Decipher.

Morrison suggests that instability could come into a “running form” on American treasures, whether investors should lose their faith in Stablecoin and want to make a massive.

“But there is also the risk of concentration to be considered, especially in the short end of the treasury market,” he says. “There is also a question that certain stables become too big to succeed, as well as problems in the overturning of short -term treasures in proportion, especially when there is an uncertainty of interest rates.”

While Morrison admits that it is still too early to know how much such danger is, he confirms that it is “the main potential disadvantage” and other experts have similar views.

“[The bill] It can lead to a huge market rebel from Trtumfi instruments in Stablecoins, “says Swarm Pieper co -founder, who admits that” are potential economic implications [of the bill] They are also quite deep. “

He speaks Decipher“Although this is on the face of the transmission of a technological model for others to own the same fundamental property, depending on how this activity is expelled, it could have all the unintentional consequences in markets – and therefore economics.”

One of the possible effects of stimulating stable companies to hold reserves in American treasures is that it could “push prices higher and bring lower”, which would be good for Pieper for the US government in its efforts to deal with high debt levels.

“One of the potential outcomes is that he could let the dollar regain the soil globally, where other digital currencies could have an advantage,” he adds.

As for the effects on the cryptocurrency market, Pieper is generally optimistic about what an ingenious act can achieve.

“This will create a great new demand for tokenized property technology, because they are more stable to the most widespread tokenized reality of the real world (RWA) on the market, it is not the only one,” he says.

Pieper notes that the activity is already returning to the US in anticipation of a more favorable regulatory environment, with an ingenious act opening up floods on a wider hug of cryptocurrencies.

And for Morrison, the act will increase confidence in stabiblekoins, and in the cryptocurrencies in general, potentially helping to reduce fraud and fraud.

“As [Hagerty] He says, the law should dispel uncertainty with a serious and thoughtful regulation, “he confirms.” This would now set it on the forehead of the global web for digital payment. “

Edited Stacy Elliott.