Regarding the surge in stablecoins in the first half of 2025, former US Treasury Secretary Lawrence Summers stated that stablecoins will not significantly increase net demand for US Treasuries, as a significant amount of funds that could flow into them are already allocated to US Treasuries. He also expressed skepticism about the claim that stablecoins will significantly contribute to budget deficit financing, citing the potential for stablecoins to significantly reduce the burden of the fiscal deficit. There are two key areas of regulation for stablecoins: preventing bank runs under multiple equilibria and prohibiting anonymous transactions. The raison d'être of stablecoins should be to facilitate payments and transactions, not to make it easier for governments to finance their debt.

Summers added that over time, Trump will realize what every previous U.S. president has learned: "Fed bashing is a very risky game." (Caixin.com)