Get ready for the US Crypto News Morning Briefing, your go-to update on the latest in the crypto world for the upcoming day.

Today, we delve into the increasing impact of stablecoin issuers on the US Treasury market. The rise in institutional acceptance and regulatory validation of US dollar-pegged stablecoins raises concerns about potential artificial inflation of demand for the dollar.

In the news: Economist Keiser expresses caution about using government debt securities to support digital dollars. Stablecoin issuers, notably Tether, are making significant strides in the US market. Tether, already known for its USDT stablecoin, plans to introduce a US-focused stablecoin by 2025. This move aims to establish stablecoins as crucial financial instruments in the Trump administration’s agenda.

The dominance of Tether in the stablecoin market is evident from a steep rise in total supply from $2 billion to over $200 billion recently. Predictions suggest stablecoins could reach a market value of $2 trillion by 2028, potentially attracting more players.

Concerns are mounting amongst the House Financial Services Committee as stablecoin influence in the Treasury market expands. Questions have been raised about Trump-associated World Liberty Financial (WLFI) and its newly introduced USD1 stablecoin.

Moreover, worries emerge about stablecoin issuers using Treasury profits to invest in Bitcoin. This behavior raises issues regarding the impact on US government reserves.

Max Keiser, a leading figure in the Bitcoin industry, alarmed by the advancing power of stablecoin issuers in the US Treasury sector. He warns about the potential consequences of using government debt tools to back digital currencies and how it might impact the global financial system.

Stablecoin issuers like Tether and Circle hold substantial amounts of US Treasury securities, using them to support dollar-pegged stablecoins and gain interest from the bonds.

Keiser criticizes this practice, highlighting concerns about its effects on fiat currency stability and broader financial systems. He suggests that such actions could lead to negative long-term outcomes for the US dollar.

Keiser also notes a trend among prominent investors and technologists leveraging artificial intelligence (AI) and innovative strategies to increase exposure to Bitcoin. The utilization of novel security structures may further boost Bitcoin's market value, indicating potential growth opportunities in the digital asset market.

The opinions expressed belong to Keiser and do not necessarily reflect those of BeInCrypto.

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