The Genius Act sounds like a win for stablecoin innovation…
But here’s the problem: it could drain deposits from the banking system. Here’s how it works:
Stablecoin issuers need to back their coins with short-term Treasuries
That money is likely to come from bank deposits
Banks will need to sell long-term Treasuries to raise cash
That’s bad for the Treasury Department, and even worse for the bond market
What looks like a clever idea might turn into another stress test for the US financial system.
#GeniusAct #Stablecoins #USBanks #Treasuries #JamesHickman #SchiffSovereign #BondMarket #CryptoRegulation
#short
