Circle CEO Jeremy Allaire told Politico that the company will focus more on short-term U.S. Treasuries. In addition, Circle has sold all government bonds that expire later than early June of this year.
“We don’t want to be exposed to the risk of the U.S. government not being able to pay its debts,” Ellair said.
Earlier, U.S. Treasury Secretary Janet Yellen said the government would have to “make decisions” if Congress does not approve raising the national debt limit.
President Biden’s administration and Republican Party officials are arguing over the issue as U.S. officials have come close to the $31.4 trillion national debt ceiling.
Note that Tether, the largest stabelcoin, also invests reserves in U.S. Treasury bonds with a maturity of less than 90 days.
Earlier, Jeremy Ellair said that U.S. authorities are to blame for USDC’s capitalization dropping by half.