Former U.S. Treasury Secretary Summers: Stablecoins will not increase the market's net demand for US bonds, Trump will realize that the risk of criticizing the Fed is extremely high

Huobi HTX reported that regarding the stablecoin that emerged in the first half of 2025, former US Treasury Secretary Lawrence Summers said that stablecoins will not increase the market's net demand for US bonds, because a large amount of funds that may inflow are already allocated to US bonds, and they do not believe that stablecoins can substantially reduce the burden on fiscal deficits, and they are skeptical of the claim that stablecoins will significantly help budget deficit financing. There are two things that must be done in the supervision of stablecoins: one is to prevent bank runs under multiple equilibriums, and the other is to not allow anonymous transactions. The reason for the existence of stablecoins should be that they can facilitate payments and transactions, not because they can help the government finance debts more easily. In addition, Summers added that over time, Trump will realize one thing that all American presidents have understood, "Bashing the Federal Reserve is a very risky game."