After a sharp sell-off back in October and November, crypto assets are sneaking higher. Bitcoin, a proxy for the space, has been flirting with $80,000 this week.
But the real story is the big moves in some crypto stocks related to Dollar 2.0 stablecoins — the crypto at the center of the Clarity Act debates in the Senate Banking Committee.
What’s the holdup? How much yield a stablecoin owner can get for holding it.
As it stands, stablecoin issuers — Tether and Circle, for example — pass through all the income they receive from owning Treasurys and other cash-producing assets to the owners.
Even if those levels are significantly reduced, they’re still more attractive than cash in the bank.
Once the Clarity Act is marked up and passed, it’ll be much easier for the banking and financial system to embrace stablecoins use.
Even without regulatory “clarity” transaction volume has been soaring. With clarity, industry forecasts skyrocket:
Stablecoin volume forecasts show usage soaring within six years to equal that of merchant giant Visa. (Source: Chainalysis)
This is a classic Grey Swan event – a positive one. The forecasts are visible and, with the passage of the Clarity Act, will have solid institutional support.
Treasury Secretary Scott Bessent — a champion of Dollar 2.0 assets— expects a mature market for stablecoins to reach $3 trillion by 2030.
In his view, the rise of stablecoins will create a broader market and demand for U.S. Treasury bills and bonds… in time to finance the U.S. $39 trillion in national debt.
If you’re looking for a company well positioned for the surging demand for stablecoins, go pro with Grey Swan Pro. (See: Shadow Stocks.)
~ Addison
P.S. Last week’s Grey Swan Live! introduced Jeff Opdyke.
Jeff is a former Wall Street Journal writer who has moved not just to heavily invest overseas, but also to live overseas.
Today, Jeff’s trading and writing Global Intelligence Letter from his bolt hole in Portugal.
We got down and dirty with Mr. Opdyke on his strong views regarding life in the U.S. political and investing horizon between now and 2028.
His views have influenced his radical decision to move overseas and focus on investing outside a weaker U.S. dollar and a renewed emphasis on gold, silver, rare earths and energy investments to weather stormy skies ahead.
This week? We’ll be visiting family out in Maine, and Mr. Packer is off to the Consensus Conference in Miami, learning about all things crypto – ideal timing with the Clarity Act moving forward. We’ll be back to our regular schedule next week.
