Stablecoin Legislation: Reshaping $29 Trillion Treasury Market

New congressional legislation is poised to fundamentally alter the U.S. Treasury market, potentially disrupting segments worth $29 trillion. The proposed framework would establish a regulatory framework for stablecoins, forcing these digital assets to be backed by liquid assets like Treasury bills. This could create new volatility risks in short-term Treasury bills as crypto markets increasingly intertwine with traditional finance.