Welcome to the Morning Crypto News Bulletin from the US—where we provide you with the most important crypto information for the upcoming day.
Let's sip some coffee while we discuss the increasing influence of stablecoin issuers in the US Treasury market. With growing acceptance from institutions and the regulatory legitimization of USD-pegged stablecoins, experts warn about artificially inflating US dollar demand.
Crypto News of the Day: Using Government Debt Tools to Support Digital Dollars is Risky, Keiser Warns
The influence of stablecoin issuers in the US is growing to the point where Tether, the company that has issued USDT stablecoin, plans to launch a US-only stablecoin by 2025. Tether wants to position the stablecoin as a strategic financial tool under the Trump administration.
Stablecoin supply by issuer in billions of USD. Source: Bain & CompanyThis chart shows Tether's dominance in the stablecoin market, with total supply increasing from 2 billion USD to over 200 billion USD in recent years.
Meanwhile, the US Treasury predicts stablecoins could reach 2 trillion USD by 2028, which could attract more players.
However, as stablecoin influence in the Treasury market increases, the House Financial Services Committee is growing concerned.
BeInCrypto has reported legislators questioning US Treasury Secretary Scott Bessent about World Liberty Financial (WLFI) associated with Trump and its new USD1 stablecoin.
However, perhaps the greater concern is stablecoin issuers using Treasury yields to buy Bitcoin. According to experts, this could weaken the US government's reserves.
A recent article from US Crypto News reports that stablecoin issuers are using Treasury yields to purchase Bitcoin. Some argue this could undermine initiatives like the proposed US Strategic Bitcoin Reserve, aimed at increasing national holdings of the pioneering crypto.
[The translation continues in the same manner for the rest of the text, maintaining the specified translations for specific terms and preserving the XML tags.]"Results are redefining global finance and making a significant contribution to Bitcoin demand. Veterans like me, who have witnessed Bitcoin's superiority over everything in the past 15 years, are seeing, for the first time, investment strategies that outperform Bitcoin, and these impacts are profound," he said.
Keiser believes that such strategies could push Bitcoin's market value even higher. He also implied that extraordinary past compound interest rates could be extended. This perception emerges as Bitcoin captures more accessible markets and reaches higher price levels.
The views presented are those of Max Keiser and do not necessarily reflect BeInCrypto's opinions.
Daily Chart
International US Treasury holdings in billions of dollars. Source: Bain & CompanyThis chart shows that stablecoins have become one of the major holders of US Treasury bonds.
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Below is a summary of some US crypto news to follow today:
