GENIUS Act mandates $149 billion in stablecoin reserves be held in US Treasuries

The GENIUS Act requires stablecoin issuers to back tokens with short-term government debt, effectively locking approximately $149 billion from Circle and Tether into Treasury holdings. As foreign central banks reduce their US debt exposure, the US government is increasingly relying on stablecoin reserves to support the Treasury market, with the Treasury Borrowing Advisory Committee projecting the stablecoin market could reach $2 trillion by 2028.