America Just Turned Crypto Into a Weapon for the Dollar

Mark Moss says the federal deficit is projected to approach $1.9 trillion this year, while annual interest on the debt is nearing $1 trillion and consumes about 18.5 cents of each dollar of government revenue.

He says foreign central banks held roughly 30% of America's marketable debt in 2006, but that share has fallen to about 12%, its lowest level in the Treasury's 25-year series.

Moss argues that stablecoins can create a new global class of dollar users while requiring reserve assets that help fund the U.S. debt market.

The GENIUS Act allows regulated banks and private issuers to create digital dollar claims, while Washington determines who may issue them, how they are backed, and which coins can access the U.S. market.

He explains that stablecoins add a new layer to money creation by allowing private companies to issue reserve-backed digital dollar liabilities that can move globally around the clock without traditional banking rails.

Moss says the stablecoin market was about $309 billion as of August 19, with approximately 99.5% of it pegged to the U.S. dollar.