Stablecoin Issuers Could Soon Be Major Buyers of U.S. Treasuries, Says Senator

U.S. Senator Bill Hagerty believes stablecoin issuers are on track to become some of the largest holders of U.S. Treasury debt as the regulatory landscape for digital dollar-pegged assets evolves.

Speaking in a recent CNBC interview, Hagerty highlighted that stablecoins—digital assets backed by reserves—will require massive amounts of highly secure, short-term assets to maintain dollar pegs. In his view, that demand will translate into a surge of purchases of Treasury bills.

“We’re going to see stablecoin issuers emerge as the top buyers of U.S. Treasuries globally,” Hagerty predicted.

The Tennessee senator is behind the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins), a bipartisan proposal designed to create a regulatory framework for stablecoins. The bill is gaining traction in Congress and could help formalize rules requiring stablecoins to be backed one-to-one by cash or short-term government debt.

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Hagerty dismissed the idea of equities being used as reserves, instead pointing to safer, liquid assets such as Treasury bills and cash as the natural backbone of the stablecoin economy. He noted that the legislation could drive over $1 trillion in new Treasury demand while positioning the U.S. dollar at the center of global digital finance.

If passed, the GENIUS Act would require issuers to hold reserves in the form of U.S. dollars, demand deposits, insured accounts, or federal debt instruments—effectively making stablecoin providers major participants in government bond markets.

Hagerty framed the bill as a transformative step for modernizing the U.S. payments system while reinforcing dollar dominance in a rapidly digitizing global economy.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.