Crypto Could Stave Off a U.S. Debt Crisis, Paul Ryan Writes

Ryan, a Republican who served as the House Speaker under then-President Barack Obama, wrote that "stablecoins backed by dollars provide demand for U.S. public debt and a way to keep up with China."

Former U.S. House Speaker Paul Ryan has suggested that crypto could help the country avoid a debt crisis. In an opinion piece published by The Wall Street Journal on Monday, Ryan highlighted the potential role of dollar-backed stablecoins in meeting demand for U.S. public debt.

According to Ryan, other countries have managed to bolster the influence of their currencies while dumping Treasury debt. He pointed out that several U.S. dollar-backed stablecoins are already available in the market, such as Tether (USDT) and U.S. Dollar Coin (USDC).

However, Ryan did not specify which stablecoins he would prefer to promote. He is currently a member of venture capital firm Paradigm’s Policy Council. Notably, Tether is the largest stablecoin by market capitalization, with a market cap exceeding $100 billion, according to CoinGecko.

Recently, Tether was reportedly being investigated by Washington and the United Kingdom over more than $20 billion of USDT that passed through Garantex, a sanctioned Russian crypto exchange. In the opinion piece, Ryan also suggested that lawmakers could push for a bipartisan stablecoin regulatory framework ahead of the 2024 election.

Several candidates, including leading presidential candidates, have shown interest in the crypto sector in recent months. However, none have been specifically mentioning stablecoins so far.

For instance, Republican presidential candidate Donald Trump told miners he wants all the remaining Bitcoin to be mined by American miners at an event last week. Meanwhile, incumbent President Joe Biden’s campaign was reportedly in talks with key industry players on "crypto policy."

While Trump has been more vocal in recent months about his growing support for the digital assets space, it appears the Democratic president is also beginning to recognize the industry’s impact on politics.