Tether becomes the seventh largest foreign buyer of US Treasury bonds in 2025; the struggle over stablecoin rules divides Trump supporters.

According to a report by the Financial Times on February 13th, Tether is projected to net purchase $28.2 billion in US Treasury bonds by 2025, becoming the seventh-largest overseas buyer. Its holdings, along with Circle's, have surpassed those of countries like South Korea and Saudi Arabia. US Treasury Secretary Scott Bessent believes stablecoins are a tool for promoting the dollar and absorbing US debt, predicting the industry will grow from its current $300 billion to $3 trillion. Currently, the banking and cryptocurrency industries are competing over stablecoin rules. JPMorgan Chase CEO Jamie Dimon and Coinbase CEO Brian Armstrong disagree on the terms. Banks are concerned that allowing third parties to pay interest on stablecoins could lead to retail deposits flowing into stablecoins, increasing financial risk. This dispute has divided Trump supporters and involves a conflict of interest between Wall Street banks and crypto industry donors.