Treasury market bulwark or catalyst for a liquidity bubble? No one’s sure whether the now government-blessed “stablecoin” explosion will juice or destabilize the economy.

When Congress passed the so-called “Genius Act” on stablecoin legislation last month with bipartisan support, it triggered another wave of speculation about just how much havoc these dollar-pegged crypto tokens might wreak, including fears of fraud, tax evasion and instability.

Those pushing back on the crypto-Cassandras have put forward much more benign forecasts, arguing that stablecoins, given their limited retail use, will remain firmly encased in the esoteric financial world, muffling any potential negative impact on the wider economy.

But these instruments are connected with arguably the most important part of th

See Full Page