The argument in the post is commonly said, but not entirely accurate. tl:dr, the Genius Act says stablecoins are backed one-for-one by Treasury Bills. So, increased stablecoin issuance creates demand for Treasuries and lower interest rates. So, where does the money come from to purchase a stablecoin? Suppose the funds are already in the financial system (i.e., a bank account or money market fund). In that case, it is just a transfer from one account that is backed by government securities to another account backed by government securities. The net change in Treasury demand is zero. Every American buying Stablecoins is not increasing Treasury demand. If it comes from outside the U.S. and is denominated in a foreign currency, they could, in theory, create new demand for Treasuries in dollars. How much of this still exists? Tether has been around for almost 12 years. People in developing nations were not waiting for the Genesis Act to have the confidence to put their life savings into stablecoins. If they were going to do this, they moved to Tether many years ago because its risks were lower than those of their unstable national currency and unsafe banking system. --- Further, this argument that the Genuis Act was secretly concocted to create Treasury demand is part of the reason this bill is not good for the crypto community. It was not to make stablecoins a better version of US dollars in regulated financial accounts. Instead, it is a way for the Tradfi system to assume control of these Stablecoins for its own selfless reasons, like funding a bloated Government, and making sure they cannot compete with bank deposit accounts (by not allowing interest to be passed to the Stablecoin owner.) If Blockbuster had bought Netflix in the early days, it would have killed it. If Yellow Taxi had bought Uber in the early days, it would have killed it. To me, the Genesis Act is trying to do this via regulations on Stablecoins.(Jim Bianco)