GENIUS Act links stablecoin issuers to the US short-term Treasury market
- —The law allows reserves in US Treasuries with residual maturity of 93 days or less and in government money market funds
- —TBAC estimated issuers' short-term Treasury holdings at over $120 billion at the end of 2024
- —Tether reported USDT in circulation at about $184.6 billion as of June 30, 2026; Circle put USDC at $74.6 billion
- —Proposed rules under the GENIUS Act have been open for comment since August 17, with an expected effective date of January 18, 2027
Why it matters: Stablecoin issuers' demand for short-dated Treasuries could become a new factor in the US government debt market, though the impact hinges on final rules due in 2027.
Source: TokenPost