Genius

The GENIUS Act, or Guiding and Establishing National Innovation for U.S. Stablecoins Act, is a new law passed by Congress aimed at regulating stablecoins. Why is it relevant? Because if you look at the chart below, stablecoins are accumulating Treasury bills at an incredible pace, placing themselves within the top ten holders of U.S. treasury securities. The U.S. treasury needs a buyer of last resort to be able to issue debt and has found that stablecoins, with a proper regulatory framework, may be the perfect ally to continue funding the crazy budget deficit the U.S. will be running for the foreseeable future. In 2024, Stablecoin issuers invested around $40 billion in T-bills, with total Treasury holdings reaching approximately $150 billion by year-end, with the majority of their holdings being T-bills. As of June, holdings grew to around $200 billion in T-bills, with Tether and Circle accounting for the majority, including $3.5 billion in new inflows in July 2025. Stablecoins only represent 4% of outstanding treasury bills, but with the legal framework that just passed Congress they can quickly become the best financing buddy of the U.S. Government.

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