Armstrong stated that stablecoins are the safest assets, provided the U.S. government remains stable. He highlighted that major global banks now view cryptocurrency as a critical priority for their survival, with approximately 500 million crypto users worldwide. He emphasized that the Genius Act mandates U.S.-regulated stablecoins to hold 100% of their reserves in short-term U.S. Treasury bonds, making them extremely secure. Armstrong noted that cryptocurrencies represent a new form of money market, not a threat to the lending market.
Armstrong framed stablecoins as a safer cash-like option amid a shifting financial landscape. He cited the Genius Act, which requires U.S.-regulated stablecoins to hold 100% of their reserves in short-term U.S. Treasury bonds, making them highly secure. This reserve requirement reinforces the safety profile of stablecoins relative to other digital assets and positions crypto alongside traditional money-market instruments rather than threatening the lending market. The remarks reflect a regulatory-oriented view of crypto’s evolving role in finance, highlighting safety, resilience, and the ongoing alignment of digital assets with conventional financial markets.
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