CLARITY Act Fails to Address US Debt Crisis, Analyst Warns

The Digital Asset Market Clarity Act (CLARITY) is being touted as a solution to fix the US debt market, but one analyst warns that it won't be enough.

Lawrence Lepard, author of 'The Big Print,' points out that even if CLARITY passes with 60 votes in the Senate, stablecoin-based demand for US debt will still fall short. The current stablecoin market capitalization is $255 billion, which covers barely 3% of the $8 trillion needed to roll over each year.

Lepard notes that foreign holdings of US debt have dropped from 57% after the financial crisis to 32% in 2025, making it even more challenging for stablecoins to prop up the market. He warns that expecting a significant hike in demand due to CLARITY passage is unrealistic.

Critics argue that relying on stablecoins alone won't be enough to address the US debt crisis, and new sources of liquidity need to be found. Coinbase Chief Policy Officer Faryar Shirzad recently highlighted the importance of jumpstarting this market, stating that dollar stablecoins can turn growing overseas demand for digital dollars into demand for US Treasuries.