The Digital Dollar Is Already Here, and Washington Did Not Have to Issue It
America said no to a government-run digital currency and yes to private, fully backed dollar stablecoins. Now there are about $312 billion of them, and their issuers are among the world's big buyers of Treasury bills. We argue it is one of the shrewdest money moves in years.
By Clara Hughes
Altas World News Opinion Estimated read time: 7 minutes Key takeaways Dollar-pegged stablecoins in circulation totaled about $312 billion on Oct. 4, 2026, up from about $259 billion when President Trump signed the GENIUS Act on July 18, 2025, according to DefiLlama data [1][2]. The law requires every licensed stablecoin to be backed at least one-for-one by safe assets such as cash and short-term Treasury bills [2]. The largest issuer, Tether, reported about $115 billion in U.S. Treasury bills at the end of June [3]. Treasury's proposed rules are open for public comment until Oct. 19, and the law is expected to take effect on Jan. 18, 2027 [4][5]. In our view, America has chosen freedom over a surveillance currency, and the dollar is stronger for it. What a stablecoin is A stablecoin is a digital token designed to always be worth one dollar. You can send it across the world in minutes, day or night, from a phone. The idea is simple. For every digital dollar issued, the company behind it is supposed to hold a real dollar, or something just as safe, in reserve. When you want your money back, you redeem the token. That promise depends on trust. For years, critics worried about whether some issuers really held what they claimed. That is why rules matter. The GENIUS Act On July 18, 2025, President Trump signed the GENIUS Act into law, America's first federal framework for payment stablecoins [2]. The name is an acronym. GENIUS stands for Guiding and Establishing National Innovation for U.S. Stablecoins [2]. Congress wrote it to bring stablecoins out of a legal gray zone and under clear federal and state supervision. The law requires issuers to hold reserves of at least one dollar for every dollar of stablecoins outstanding. Those reserves must be in safe forms: U.S. currency, deposits at banks or the Federal Reserve, short-term Treasury bills, notes or bonds maturing within 93 days, and certain repurchase agreements backed by Treasuries [2]. Treasury Secretary Scott Bess…