Does GENIUS turn stablecoin issuers into stealth buyers of US debt?

The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act aims to regulate dollar-pegged tokens within a supervised framework, requiring issuers to back tokens 1:1 with high-quality assets like short-maturity Treasurys and Fed balances. Author Shanaka Anslem Perera argues this legislation effectively turns payment stablecoin issuers into "forced buyers" of US sovereign debt, channeling global demand for digital dollars into structural demand for short-term US paper, potentially offering the Treasury cheaper financing. While the Act promises regulatory clarity and consumer protection, critics note that restricting issuers from broad lending or paying yields results in balance sheets heavily weighted toward T-bills. Furthermore, Perera suggests that in a crisis involving significant stablecoin outflows, the resulting market shock could resurface the debate for a central bank digital currency (CBDC) as a stabilizing measure, effectively placing private stablecoins under a de facto central bank backstop.

(Source：Cointelegraph)