On August 25th, overseas reports indicated that the U.S. Treasury Department is planning to implement a "twist operation" to buy back long-term bonds, aiming to reduce government financing costs. Concurrently, there is a strategic push to expand the stablecoin market to absorb the increased supply of short-term debt. However, this approach carries long-term stability risks and its implementation timeline may extend well beyond the current presidential term.

Analysts suggest that the Trump administration's relaxation of cryptocurrency regulations is deeply intertwined with the Treasury's fiscal strategy to lower government borrowing costs. Treasury Secretary Bessent has described the combination of expanding short-term debt issuance and scaling up long-term bond buybacks as the "Treasury twist operation," designed to stabilize the long-end of the yield curve. A critical component of this plan involves securing large-scale demand for newly issued short-term bills.

To this end, the United States aims to grow its stablecoin market, currently valued at around $300 billion, to nearly $4 trillion. The central link in this strategy is the enacted GENIUS Act, which mandates that dollar-pegged stablecoins hold ultra-short-term Treasury bills with a remaining maturity of 93 days or less as reserve assets. Furthermore, the Clarity Act, which President Trump is urging Congress to consider, could further stimulate demand for stablecoins.

A report from the Brookings Institution highlights that for every dollar in stablecoins, issuers must allocate 80 cents to Treasuries—a ratio significantly higher than the 8 cents required for traditional banks. Citigroup Research projects that if the stablecoin market reaches $4 trillion by 2030, it would absorb a quarter of the total U.S. Treasury supply.

Driven by these policy expectations, Bitcoin briefly surged to $79,987, marking a weekly gain of over 20%. Shares of both Circle and Coinbase also rallied more than 20% during the same period. Nevertheless, long-term stability concerns persist, as the total stablecoin market capitalization has recently seen its growth stall. The Brookings Institution has cautioned that it remains to be confirmed whether the Treasury demand generated by stablecoins is sustainable.

According to The Wall Street Journal, the time required for stablecoins to grow to a scale capable of significantly influencing government financing costs will likely exceed the duration of Trump's current presidential term.