The Wall Street Journal

Stablecoin Legislation Will Juice Demand for Treasurys—to a Point

Issuers of digital currencies need Treasury bills for their reserves, but analysts say the consequences are uncertain

Treasury Secretary Scott Bessent arriving last week for a hearing on Capitol Hill.
Treasury Secretary Scott Bessent arriving last week for a hearing on Capitol Hill. Photo: Anna Moneymaker/Getty Images

New legislation regulating stablecoins—a type of digital currency pegged to the U.S. dollar—is widely expected to boost demand for Treasurys. But Wall Street isn’t sure how much.

The cryptocurrency industry scored a major win Tuesday when the Senate passed the legislation, which many expect to spur adoption by businesses ranging from payment providers like Mastercard and Visa to big merchants including Amazon.com and Walmart.

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