Stablecoins: The New Big Players in U. S. Debt

The U.S. government is making significant strides to integrate stablecoins into debt management. A pivotal law, the CLARITY Act, is scheduled for Senate review in January 2026, following a delay caused by a government shutdown. The bill, already passed by the House, seeks to establish stablecoins as a key component of U.S. debt handling.

Stablecoins: A Growing Force

Stablecoins are digital currencies pegged to real-world assets, such as the U.S. dollar. Their market is expanding rapidly, currently valued at $234 billion, with projections reaching $2 trillion by 2028 and potentially $4 trillion by 2035. Major players like Circle and Tether already hold billions in U.S. Treasury bills. If this trend continues, stablecoin issuers could become the largest holders of U.S. debt, surpassing nations like China and Japan.

U.S. Debt Crisis Deepens

The national debt has surpassed $38 trillion and is expected to hit $39 trillion by early 2026. Interest costs are also rising, projected to reach $14 trillion over the next decade. Financial institutions are already preparing for this shift, developing infrastructure to support stablecoins and even considering cryptocurrencies like Bitcoin and Ethereum as collateral.

Challenges Ahead

Despite progress, hurdles remain. The January review is just the beginning. The 2026 midterm elections could slow momentum, as lawmakers may prioritize campaigns over legislation. Additionally, three major issues must be resolved before the law can be finalized.