U.S. Stablecoin Publishers Allegedly Acquiring Bitcoin with U.S. Treasuries, According to Max Keiser's Assertion in U.S. Cryptocurrency News
Unregulated Coffee Break: Brace Yourself for the US Crypto News Daily Dish
!'Get a load of this!' We're diving into the brewing storm of cryptocurrency news, focusing on the ever-expanding influence of stablecoin issuers in the US.
Stablecoins Storming the Treasury Market: Proceed with Caution, Max Keiser Warns
Tether's dominance in the stablecoin market is rising, with ambitious plans to launch a US-only stablecoin by 2025. As institutional adoption grows, regulators and lawmakers scrutinize the role of these dollar-pegged digital coins. In a stormy seaside chat with BeInCrypto, Bitcoin pioneer Max Keiser presents a vivid picture of the risks lurking below.
Here's a snapshot of the hazards Max Keiser believes could capsize the financial ship:
What's the Harm in Using Treasury Bonds as Stablecoin Collateral?
Stablecoin issuers invest in US Treasury bonds to generate interest income and bolster trust in their dollar-pegged digital coins. Keiser suggests that this practice can have dangerous side effects:
- Artificial Inflation of Demand for Dollars: Rapid growth in institutional adoption and regulatory acceptance could cause artificial demand for the dollar, masking potential underlying economic vulnerabilities.
- Eroding US Government Reserves: If stablecoin issuers use their surplus Treasury yields to purchase Bitcoin, they might undermine the stability of US government reserves.
Tether and Circle: Accumulating Government Debt and Crypto
Tether and Circle, two leading stablecoin issuers, hold billions in US Treasury bonds. As of Q1 2025, Tether accounted for almost $120 billion in short-term US Treasury securities and reverse repos, while Circle reported $22 billion in Treasury bills.
Keiser suggests that these holdings may contribute to deeper systemic issues tied to fiat currency dynamics:
"Backing digital dollars with government debt instruments is not a healthy monetary system. It's a financial hologram doomed to repeat the same disastrous patterns we've seen in the past."
OG Max Keiser Sees AI as the Future Financier
In other news, Keiser highlighted the increasing role of artificial intelligence in the financial world. High-profile investors like Michael Saylor and Vivek Ramaswamy leverage AI to invent novel strategies to maximize returns on Bitcoin investments. Ramaswamy plans to take his company, Strive Asset Management, public via a SPAC merger, aiming to accumulate Bitcoin using strategies pioneered by Saylor's Strategy.
Keiser believes such innovations could push Bitcoin's market value even higher, setting the stage for extraordinary compounding rates and potentially extending the extraordinary growth of the past.
Disclaimer: Max Keiser's views do not necessarily reflect those of BeInCrypto.
Bonus Cape Cannon Facts:
- Tether's market dominance: From a $2 billion market cap in 2020, Tether's supply has risen to over $200 billion today.
- Stablecoin market potential: US Treasury projections indicate the stablecoin market could reach a $2 trillion market cap by 2028.
Stay tuned for more red-hot crypto news on our wild digital finance adventure!
- Max Keiser warns about the growing dominance of Tether in the stablecoin market, particularly their ambitious plan to launch a US-only stablecoin by 2025.
- The increasing institutional adoption of stablecoins has caused regulators and lawmakers to scrutinize their role in the financial markets.
- Max Keiser believes that stablecoin issuers investing in US Treasury bonds for interest can create dangerous side effects, such as artificial inflation of demand for dollars and eroding US government reserves.
- Tether and Circle, two leading stablecoin issuers, have billions invested in US Treasury bonds, with Tether accounting for nearly $120 billion and Circle reporting $22 billion as of Q1 2025.
- Keiser argues that using government debt instruments to back digital dollars is not a healthy monetary system, citing potential repeats of past disastrous patterns.
- Max Keiser also foresees the increasing role of artificial intelligence in the financial world, with high-profile investors like Michael Saylor and Vivek Ramaswamy leveraging AI for Bitcoin investments.
- Ramaswamy plans to take his company, Strive Asset Management, public via a SPAC merger, aiming to accumulate Bitcoin using strategies pioneered by Saylor's Strategy.
- Keiser suggests that these AI-driven innovations could push Bitcoin's market value even higher, potentially leading to extraordinary compounding rates.
- The stablecoin market is predicted to reach a $2 trillion market cap by 2028, according to US Treasury projections.
