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Stablecoins: The GENIUS Act Passes with Darren Moore, Jr.

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With the passage of the GENIUS (Guiding and Establishing National Innovation for U.S. Stablecoins) Act, the Trump Administration’s stablecoin-related policies and actions are unfolding at a fast and furious pace, aided by considerable hoopla in the press. Darren Moore, Jr.—a researcher who runs YouTube and Patreon channels focused on macroeconomic analysis and the evolving role of digital technologies—returns to the Solari Report for a third time to help us parse the implications.

After tracing the general contours of the GENIUS Act, Darren and I consider what the Act means to the Treasury market. Treasury Secretary Bessent is projecting issuance of $2 trillion in stablecoins within the short term and $3.7 trillion by the end of the decade—and recall that stablecoins are backed 1:1 by “cash-equivalent” Treasury bills and bank reserves and deposits. If you look at how much the “Big Beautiful Bill” increased the deficit at the same time that the Fed is reducing its holdings of Treasury securities, stablecoins appear to be a way for global stablecoin buyers to help carry the fiscal largesse load. If successful, therefore, the stablecoin gambit could transfer the U.S. government’s growing debt position from the Fed’s balance sheet to retail stablecoin users around the world.

Full Report: https://solari.com/stablecoins-the-genius-act-passes-with-darren-moore-jr/

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