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The Treasury Borrowing Advisory Committee confirmed that GENIUS Act payment stablecoins must hold 1:1 reserves in cash, deposits, repo, and Treasuries with 93 days or less remaining maturity, which channels issuance growth almost entirely into the front end of the curve. That structure supports bill demand and can compress short-end yields at the margin, but it does not directly absorb 10-year or 30-year supply, so it is no cure for long-end term-premium pressure. TBAC also flagged that flows migrating out of bank deposits and money market funds are not genuinely new demand, so the key watch item is whether stablecoin float growth outpaces MMF outflows and whether Treasury shifts more issuance into bills to meet it.
As a Macro signal, watch whether it changes price action, volatility, or flows around USDT, BTC.
Original Source: 토큰포스트
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