Stablecoins may emerge as a significant funding source for the U.S. government following the passage of the GENIUS Act by the Senate. U.S. Treasury Secretary Bessant has highlighted the potential of a regulated stablecoin market to create new buyers for U.S. government debt, potentially driving private sector demand for U.S. Treasuries. Bessant indicated that stablecoin market demand for U.S. government securities could reach $2 trillion in the coming years. Despite this potential, analysts caution that stablecoins are unlikely to fully resolve the U.S. government's debt financing challenges. The development of additional stablecoin demand will take time, and the U.S. Treasury faces the need to issue substantial debt securities within a year. Concerns also arise over potential risks if the Federal Reserve cannot reduce interest rates, which could exacerbate the U.S. deficit situation.