MAR 16, 2026Mercatus Center at George Mason University
Neha Narula, Anders Brownworth, and Daniel Aronoff on Understanding Stablecoins in the GENIUS Era
MONITOR STABLECOIN RESERVESANALYZE TREASURY DEMANDASSESS BLOCKCHAIN INTEROPERABILITYWATCH TETHER LIQUIDITY
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The 'hidden plumbing' of stablecoins creates systemic vulnerabilities - The operational layers connecting crypto to traditional finance are often opaque, leading to potential settlement and liquidity risks that aren't visible on the surface.
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Stablecoins are becoming a primary driver of US Treasury demand - As issuers accumulate massive reserves of short-term government debt, they are essentially transforming the Treasury market into the foundational backing for digital cash.
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Technical interoperability is the industry's largest friction point - Moving value across disparate blockchains introduces security trade-offs and fragmentation that hinder the efficiency of stablecoins as a global medium of exchange.