- Firm CEO Jeremy Allaire said
- He said Circle has completely eliminated all long-term U.S. Treasury obligations
- If Republicans and Democrats in Congress do not agree on the debt ceiling, a technical default will come June 1
Circle has gotten rid of all long-term U.S. Treasury bonds for fear of a possible default. CEO Jeremy Aller said this in an interview for Politico.
“We don’t want to take additional risk because of the potential inability of the U.S. government to handle its debt,” the exchange CEO said.
Aller said Circle has completely liquidated its portfolio of bonds maturing after June 1. Why this date?
We mentioned earlier that the U.S. is actually “stuck” in the debt ceiling. Republicans, meanwhile, oppose raising the limit further.
If consensus is still not reached, after June 1, the United States will not be able to issue new money.
This will cause a “domino effect,” leading to a debt crisis in many countries.. All U.S. Treasury bonds currently held by the USDT will be redeemed on May 31.
We also previously reported that the company had transferred all cash from the stabelcoin collateral fund to one of 30 structurally significant banks.
Robert Kiyosaki also predicted a technical default. He pointed out that the quotations of short-term Treasury bonds are rising.
Consequently, companies are rushing to get rid of long-term securities, and this indicates growing panic in the market.