Kremlin Warns US $35T Debt Shift into Stablecoins via GENIUS

At the Eastern Economic Forum, Kremlin adviser Anton Kobyakov claimed that Washington plans to shift about $35 trillion of US debt into stablecoins to engineer a ‘crypto cloud reset’ that devalues existing liabilities and restores confidence in the dollar. He drew parallels to the 1933 suspension of the gold standard and Nixon’s 1971 Bretton Woods exit, when the US untied the dollar from gold and offloaded inflation costs onto foreign creditors. However, market data show that total stablecoin supply is under $300 billion, far too small to absorb federal obligations exceeding $37 trillion. The recent GENIUS Act requires providers like Tether (USDT) and Circle (USDC) to back each token with cash or US Treasuries and publish reserve attestations, which would actually boost demand for US debt rather than reduce it. Meanwhile, US authorities have set up a Strategic Bitcoin Reserve and are reviewing the BITCOIN Act, signaling growing government engagement with crypto. Crypto traders should note that these developments highlight potential shifts in monetary policy and reserve allocation but are unlikely to materialize given current stablecoin market size. Bitcoin (BTC) trades near $113,000, and government-backed crypto holdings could add long-term support for digital assets.