Peter Schiff: Stablecoins Threaten U.S. Treasury Market Stability

Schiff Says Stablecoins Hurt Treasury Demand

Economist Peter Schiff warns that stablecoins may weaken U.S. Treasury markets by diverting liquidity from money market funds, reducing long-term bond demand.

Capital Shift Could Raise Borrowing Costs

Unlike money market funds that share yield with investors, stablecoin issuers keep the returns—reducing capital for lending and potentially increasing mortgage rates.

Short-Term Gains, Long-Term Pain?

Stablecoins typically fund short-term Treasuries, not long-term debt. Schiff warns this imbalance might disrupt credit markets and productive capital access.

Schiff vs. Wall Street's Stablecoin Optimism

While giants like BlackRock praise stablecoins, Schiff argues they pose systemic risks—especially with pro-crypto policies like the GENIUS Act in play.

The Regulatory Tug of War

As stablecoins gain traction, regulators face a critical question: Are they the future of finance or a hidden threat to economic stability?