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Can stablecoins reshape government debt markets?

Yes. Stablecoins can reshape government debt markets because their issuers park reserves in short-term US Treasuries, which quietly makes them major buyers of public debt. Tether alone holds more US government debt than most countries, and Washington wrote that into law with the GENIUS Act in July 2025: every dollar stablecoin must be backed by dollars or Treasuries. I have mapped the scenarios: stablecoins take on America's debt, which passed $40 trillion in August 2026, as a new buyer of last resort, while policymakers, banks, and investors barely grasp what programmable money does at scale. The market is rewiring the plumbing of finance in public, and almost nobody reads the blueprint. I do. Follow the money, and you find it parked in Treasuries. Follow it further, and you find the off switch: the big issuers can freeze your coins.

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