The U.S. Treasury, led by Scott Bessent, has announced the upcoming stablecoin legislation expected by mid-July. This step could significantly alter the financial market, especially in the cryptocurrency sector.
Stablecoin Legislation and Its Implications
The upcoming legislation aims to back stablecoins with U.S. Treasuries, potentially changing the demand dynamics for government securities.
Market Forecasts for Stablecoins and Treasuries
There is a projected surge in demand for U.S. Treasuries if stablecoins are fully backed by government-backed assets. The stablecoin market cap is expected to exceed $3.70 trillion by 2030.
Market Data Overview and Conclusions
Currently, the price of USDC is $1.00, with a market cap of $61.65 billion. The stability of USDC in recent months supports expectations regarding the legislative impact on market perceptions.
Stablecoin legislation could mark a significant step towards regulating financial markets and affect the demand for Treasuries, enhancing financial stability.
