Washington's cryptocurrency transformation is not about Silicon Valley, but about U.S. Treasury bonds

As foreign Treasury buyers withdraw, the Trump administration’s impetus for crypto-friendly policies stems from the urgent need to resolve U.S. debt problems. Under the GENIUS Act, stablecoins that must hold cash or short-term Treasury bonds have become the main source of demand—converting more than 90% of deposits into government bonds. Tether and Circle are currently among the world's largest Treasury holders. While this strategy can promote bond issuance, it also poses the risk of distorting the market and faces resistance from banks.