Here's your Forbes Daily Briefing for Sunday, May 11th.

Today on Forbes, why stablecoin issuers could displace Japan and China as the biggest

buyers of U.S. Treasury securities.

Brian Moynihan, the chief executive officer of $2.6 trillion in assets Bank of America,

doesn't usually make headlines for his crypto opinions. But in February, he did just that. He said, quote, if they make that legal,

we'll go into that business. He was talking about stable coins, blockchain-based tokens typically

pegged to the U.S. dollar, and increasingly, the plumbing

of global payments. The they he was referring to is Congress, which is now racing to lay down the

rules of the road for these crypto creations. The Stable Act in the House and the Genius Act in the

Senate are dueling bills with a common goal to bring

stable coin issuers into the regulatory fold, spelling out exactly how much capital, liquidity,

and risk management is enough. They also aim to clarify which federal or state agencies get to

play referee. But there's another less flashy subplot. How will widespread

acceptance of stablecoins among traditional institutions globally affect the $28 trillion

United States treasury market? Treasuries are the backbone of stable coin reserves, because not

much else comes close in terms of safety and liquidity.

If you're offering a digital dollar, you need to back it with assets that are as close to

risk-free as possible. This sounds a lot like hundreds of money market mutual funds,

which are issued by giants like BlackRock, Fidelity, and Vanguard, and hold over $6 trillion

in assets, mostly in U.S. Treasury bills.

The big difference is that unlike a money market fund, say from Fidelity, which might pay you

an annual yield of 4%, most stablecoin issuers have so far resisted offering any kind of yield or

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