Connecting the Dots In The USA’s Bitcoin And Stablecoin Playbook

• A blockchain consultant has recently shared his theory as to why the US is pivoting toward favorable regulations on Bitcoin and stablecoins.
• Interestingly, it’s not about innovation or giving the crypto community what they want, because its ultimate goal is triggering more treasury demand.

Vincent Ferretti, principal at Bitmore, recently provided insights into why the US is betting big on stablecoins and Bitcoin (BTC). According to him, the administration of President Donald Trump is not actually pivoting on digital assets due to innovation or financial inclusion. It’s all about treasuries.

The consultant on blockchain projects explained that introducing less friction for the entry and engagement of institutions with Bitcoin would lead to more demand for the premier cryptocurrency asset. In return, spurring more demand for BTC would translate to more liquidity in the system. Interestingly, this would usher in the minting of more stablecoins.

The Bitcoin and Stablecoin Liquidity Loop

Ferretti claimed that the unprecedented growth of the stablecoin market means a sustained, global demand for US debt. This would result in lower borrowing costs and stability in the debt markets.

ADVERTISEMENTThe enforcement of the GENIUS Act paves the way for such a scenario. It will mandate issuers to back their stablecoins with at least a 1:1 ratio of high-quality liquid assets. These include US dollars, bank deposits, and short-term, low-risk securities like US Treasuries.

The blockchain consultant highlighted that with more favorable crypto policies, more institutions would adopt BTC on their balance sheets. This would catalyze more liquidity, more stablecoins, and treasury demand. Hence, it’s not about tolerance to digital assets; it’s the alignment of the outdated debt-driven system to the current digital landscape.

Additionally, he emphasized that Bitcoin’s rise and stablecoin growth aren’t a mere coincidence. Instead, it’s a structural evolution.

ADVERTISEMENT## Continuous Accumulation of Bitcoin Treasury Companies

Bitcoin treasury companies are unrelenting in their accumulation amid the latest regulatory and economic developments. On the way to Monday, 168 publicly listed companies that have disclosed their BTC holdings revealed that they have already captured over 976K units of the crypto asset.

Strategy (the rebranded MicroStrategy) now has 628,946 BTC, while BlackRock leads the acquisition to back its exchange-traded funds (ETFs) at nearly 749K BTC. The US remains on HODL of more than 198K BTC. Meanwhile, Tether emerged as the top Bitcoin holder among stablecoin issuers with over 100K reserves.

The Trump Group was a surprise entrant into the top 10 rankings of publicly traded Bitcoin companies as of late, landing in the eighth spot as it topped up its holdings to elevate its portfolio to 15,000 BTC.

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