How stablecoin could send federal spending off the rails

For the first time, the United States Treasury’s total accessible market has expanded to global retail investors through stablecoin innovation. While the full impact on the financial system remains uncertain, the effect will be to incrementally loosen Congress’s fiscal constraints by lowering borrowing costs and weakening traditional budgetary discipline.

To unlock the transformative potential of stablecoin but prevent the U.S. from falling off an even more massive fiscal cliff, Congress must establish firm fiscal rules.