Investment manager and The Big Print author Lawrence Lepard said the CLARITY Act would not materially improve conditions in the U.S. Treasury market even if it clears the Senate with 60 votes. His argument centers on scale. The stablecoin market is currently worth about $255 billion, down from $263 billion in January, and is largely backed by U.S. Treasuries purchased by Circle and Tether. By comparison, the U.S. Treasury needs to roll over more than $8 trillion in debt each year, meaning current stablecoin demand covers only about 3% of that requirement. Lepard also pointed to a longer-term shift in ownership, saying the share of U.S. debt held by foreign entities had fallen to 32% in 2025 from 57% after the financial crisis. Coinbase Chief Policy Officer Faryar Shirzad offered a separate view, saying dollar-backed stablecoins can convert overseas demand for digital dollars into demand for U.S. Treasuries. The remarks were cited by Bitcoin.com News.
Investment manager and The Big Print author Lawrence Lepard said the Digital Asset Market Clarity Act, or CLARITY Act, would not be enough to improve the current state of the U.S. Treasury market, even if it wins 60 votes in the Senate.
Stablecoin demand remains small relative to Treasury refinancing needs
Lepard said the stablecoin market is currently valued at about $255 billion. Those tokens are mainly backed by U.S. Treasuries purchased by Circle and Tether. He added that the figure is below January's $263 billion level.
Set against that, the U.S. Treasury has to roll over more than $8 trillion of debt each year. On that basis, stablecoins cover only about 3% of annual debt demand.
Foreign ownership share has declined
Lepard also said the share of U.S. debt held by foreign entities had fallen to 32% in 2025, down from 57% after the financial crisis.
Coinbase policy chief points to Treasury demand channel
Coinbase Chief Policy Officer Faryar Shirzad said dollar stablecoins can turn overseas demand for digital dollars into demand for U.S. Treasuries.
The report cited Bitcoin.com News.
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