U.S. Treasury Secretary Scott Bessent has a solid plan to manage the country's soaring debt and it involves a growing reliance on money-market funds and stablecoins.

Speaking at the Treasury Market Conference, Bessent explained how the department is thinking about long-term borrowing, noting that the explosive rise of stablecoins and money-market funds will play a larger role in shaping future U.S. debt demand.

This marks the first time a Treasury Secretary has publicly positioned stablecoins as a future pillar of U.S. debt financing.

For context, a stablecoin is a cryptocurrency designed to keep its value pegged to the U.S. dollar — so it doesn’t swing in price like Bitcoin or other tokens. It’s meant to behave like digital cash, offering the speed of crypto with the stability of fiat.

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The stablecoin market now stands at roughly $312 billion with over $146.6 billion in 24-hour trading volume, according to CoinGecko. Money-market funds, meanwhile, sit at around $7.5 trillion, Bessent noted.

Bessent added that the stablecoin sector could grow tenfold by the end of the decade \\"thanks to the innovation made possible by the GENIUS Act.”

The GENIUS Act is a new U.S. law that creates a full regulatory framework for stablecoins, treating them like highly supervised digital dollars. It allows licensed companies to issue fully backed stablecoins and makes them legal to use across payment systems, banks, and financial markets. The goal is to bring stablecoins into the mainstream economy — safely — and turn them into a major source of demand for U.S. Treasury bills.

That would place stablecoins near $3 trillion, aligning with new forecasts from investment firms like Bernstein and Citi, which both see crypto-dollar demand becoming a major engine of global liquidity, payments, and Treasury bill settlement.

“We are closely monitoring growth in money market funds and the stablecoin market, which are both large investors in Treasury bills,” he said.

The comments come as America’s gross national debt has reached $38.09 trillion, up $2.18 trillion from a year earlier, according to the Treasury’s November Monthly Debt Update.

Debt held by the public: $30.59T

Intragovernmental holdings: $7.50T

Average daily increase over the past year: $5.97B

Equivalent per household: $288,101

During the 43-day government shutdown, the U.S. borrowed $619 billion, analysts at The Kobeissi Letter noted — “$14.4 billion per day while the Federal government was shut down.” “There’s only one thing that never stops in the US government: deficit spending,” they wrote.

Despite the record borrowing, Bessent said Treasury will maintain its “Regular and Predictable” issuance framework, while adapting to structural shifts in demand — including stablecoin providers, banks expanding their Treasury holdings, and ongoing leverage-rule reforms.

As he put it:

“When and if the time comes to make changes, we will be prepared.”

Analysts say that if stablecoins scale to the multi-trillion-dollar range, they could become one of the most important marginal buyers of U.S. debt — potentially reducing funding pressures as deficits rise.

Further clarity is expected in Treasury’s December Monthly Debt Update.

This story was originally reported by TheStreet on Nov 13, 2025, where it first appeared in the Policy section. Add TheStreet as a Preferred Source by clicking here.