The Genius Act is also a stealth bailout— which is why I think it was embraced by US regulators so quickly.

For context, the Genius Act legalises stablecoins by providing regulatory frameworks for more companies to issue them. So USDT and USDC will have competitors soon.

But the real genius of the Act is that it enables the US to continue accumulating endless debt.

You see, in theory, every stablecoin issued is supposed to be backed by 1 dollar in a vault. But in practice, stablecoins are 75% backed by US treasuries.

That’s right— there is a new buyer of US debt in town. It has shifted from nation states to literally the global consumer— anyone who wishes to hold USD.

Circulating stablecoins are currently $270 billion. But analysts are already predicting stablecoins to grow to $3 trillion by 2030.

Something you may want to dive deeper in case you haven’t done yet.