Regarding the rise of 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 large portion of the funds that may flow in are already allocated to US Treasuries. He also does not believe that stablecoins can substantially reduce the burden of the fiscal deficit and is skeptical of the claim that stablecoins will significantly contribute to budget deficit financing. There are two key areas of regulation for stablecoins: first, preventing bank runs under multiple equilibria, and second, prohibiting anonymous transactions. The raison d'être of stablecoins should be that they facilitate payments and transactions, not that they make it easier for the government to finance its debt. Summers added that, over time, Trump will realize what every US president has: "Fed-bashing is a very risky game." (Caixin.com)