Former Speaker of the United States House of Representatives, Paul Ryan, has expressed his support for stablecoins and believes they could be worth trillions of dollars once regulated. In an interview with Bloomberg, Ryan highlighted stablecoins as a potential solution to the US sovereign debt crisis. He stated that stablecoin legislation would be a step in the right direction and could be implemented this year. Stablecoins are crypto tokens that are pegged to stable assets, such as the US dollar, and are used for trading, borrowing, and lending in the decentralized finance space. Stablecoin issuers like Tether and Circle back their tokens with short-term US Treasury bills and other dollar equivalent instruments. Ryan believes that a bipartisan agreement on stablecoins, currently being negotiated, could lead to a legal framework for stablecoin deployment, potentially increasing the market size from hundreds of billions to trillions of dollars. He also noted that stablecoin adoption could help integrate the dollar into the ongoing digitization of currencies and improve demand for bonds. Ryan’s support for stablecoins aligns with a growing pro-crypto sentiment among Republicans, who have shown more favor towards the industry compared to Democrats.
