Opinion: Promoting stablecoin issuance may increase liquidity supply in the short term.

According to Mars Finance, Yi Han, chief macroeconomic analyst at Huatai Securities, pointed out that relaxing bank regulations and promoting stablecoin issuance could temporarily increase demand for U.S. Treasuries and liquidity supply, and even somewhat alleviate the supply-demand contradiction of U.S. Treasuries. However, in the short term, "creating" demand for U.S. Treasuries may instead amplify the long-term risks associated with them. In addition, the "Too Big to Fail" bill is expected to increase the U.S. fiscal deficit by more than $4 trillion over the next decade, surpassing the previous House version. Previously, Deutsche Bank had indicated that the bill could significantly promote U.S. dollar stablecoins, increase domestic financial repression, and put pressure on the Federal Reserve to cut interest rates and significantly weaken the dollar. (Caixin)