Stablecoin Law Could Trigger Massive Inflows Into U.S. Treasuries, Says Treasury Official
A flood of capital could head into U.S. government debt markets following the approval of the GENIUS Act, according to Treasury Deputy Secretary Michael Faulkender.
The legislation, recently signed into law by President Trump, mandates that stablecoins—digital currencies pegged to the dollar—must be backed one-to-one by liquid assets, primarily cash or short-term U.S. Treasuries.
Faulkender told Bloomberg that this clarity could dramatically reshape global finance. With rules now in place, both domestic and international players may adopt stablecoins more broadly for payments and invoicing, knowing each token is backed by U.S. government debt.
The result? A potentially massive wave of demand for Treasury bills.
He added that stablecoins’ near-instant settlement speeds and lower costs make them a natural upgrade over traditional cross-border transfers, which often take days. If global trade increasingly relies on dollar-backed digital assets, Faulkender believes it could generate “trillions” in new demand for Treasuries.
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
