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The Genius Act requires stablecoins to hold short-term Treasurys, which could support Treasury Secretary Scott Bessent's effort to shift borrowing toward shorter maturities
Getty Images / Ian Maule
Treasury Secretary Scott Bessent's plan to shift U.S. borrowing toward shorter-term debt has a potential ally in the Trump administration's push for crypto legislation, according to The Wall Street Journal.
The connection runs through stablecoins. Under the Genius Act, the crypto regulatory law passed last year, U.S.-issued stablecoins backed by the dollar can hold only certain assets to maintain their peg — including Treasury securities maturing within 93 days. Bessent has previously cited projections that the stablecoin market could grow from its current $300 billion to nearly $4 trillion, and has written that such growth "could lower government borrowing costs," according to the Journal.
