Stablecoin and a New Escape Route for US Public Debt?

SUNDAY POLITICS: WHY IS THE NATION REPEATING PAST MISTAKES? - SARAH PAINE

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One night in June 2025, in the cold red glow of the national debt clock on 44th Avenue in Manhattan, the US public debt figure surged by another 100 billion USD in just a few minutes – equivalent to the combined budgets of many countries. At the same time, in Washington, the wooden gavel of the Senate President sounded dryly: GENIUS Act passed with a 66–32 vote, marking an unprecedented legal turning point for the stablecoin market.

No applause. But with that quiet nod, the United States has "changed the fate" of stablecoin: from a speculative tool, anonymously swapping value on blockchain to a 24/7 retail capital absorption channel for Treasury bonds, operated like a decentralized public debt mobilization machine reaching every mobile wallet.

From that moment, every newly minted USDC, every PYUSD swiped for payment, even every loyalty point quietly converted by Walmart or Amazon into “Wal-Coin” in the POS system – no longer a 1:1 USD stamp between blockchains – but an order to buy short-term T-bills from the US Government.

The GENIUS Act did not invent stablecoin. This act tames it. And in that process, Washington doesn't need to touch the Federal Reserve's printing press – just snap its fingers to summon millions of mobile wallets – each turning into mini-MMF pumping blood into public debt, day and night, without rest.

In today's article by Viet Hustler, we will go through the entire sophisticated policy strategy hidden behind this law that sounds friendly to “digital finance”. Each chapter will analyze:

Stablecoin – from technological structure to the three main types (fiat-backed, crypto-backed, algorithmic), and its increasingly vital role in the DeFi ecosystem.
The transformation process from meme-token to “mainframe liquidity”, from the Terra/UST fever to congressional hearings.
GENIUS Act – the “golden shackles” legal framework, four control locks, and the fiscal philosophy hidden behind the yield ban.
QE 3.0 Model – Mobile wallets become short-maturity T-bill banks, mint-redeem mechanism tied to public debt demand.
Infrastructure Race – from BlackRock, DTCC to Walmart, Amazon, Coinbase – “tokenized T-bill” architecture and retail payment map.
Who benefits – who bears the risk – and three “smoldering fuses” threatening the financial system.
Endgame – Stablecoin as “US-Debt-Coin” – and the question: Do you choose to stand in the flow of digital coupons or be swept away by it?

This is not just the story of legalizing digital currency. This is policy blueprint to turn stablecoin into the fiscal blood filter machine of 21st-century America.

And the wallet in your pocket – could be one of those capillaries.