Stablecoins: The New Big Players in U. S. Debt

The U. S. government is making big moves to get stablecoins involved in handling debt. A key law called the CLARITY Act is set to be reviewed by the Senate in January 2026. This comes after a long delay caused by a government shutdown. The law, which already passed in the House, aims to make stablecoins a big part of U. S. debt management. Stablecoins are digital currencies tied to real-world assets, like the U. S. dollar. They are growing fast. Right now, the market is worth $234 billion, but experts predict it could reach $2 trillion by 2028. Some even think it could hit $4 trillion by 2035. Big companies like Circle and Tether already hold billions in U. S. Treasury bills. If this trend continues, stablecoin issuers could become one of the largest holders of U. S. debt, even surpassing countries like China and Japan.The U. S. debt situation is getting serious. The national debt is now over $38 trillion and is expected to hit $39 trillion by early 2026. Interest costs are also rising, projected to reach $14 trillion over the next decade. Banks and financial companies are already preparing for this shift. They are building infrastructure to support stablecoins and even plan to accept cryptocurrencies like Bitcoin and Ethereum as collateral. However, there are still hurdles to overcome. The January review is just the first step. The 2026 midterm elections could slow things down. Lawmakers might focus more on their campaigns than on passing new laws. There are also three major issues that need to be resolved before the law can be finalized.