U.S. Treasury · SEC · CryptoSlate
Those numbers describe the survey respondents, and they don't prove customers will be shut out
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If customers have few providers to choose from, providers have less reason to compete away the savings that clearing can produce.
Key facts
- The scale is enormous: activity used to calculate the Secured Overnight Financing Rate, or SOFR, went from about $1 trillion in early 2022 to roughly $3 trillion, according to the Fed research
- The SEC's deadlines are Dec. 31 for eligible outright purchases and sales of Treasuries, followed by June 30, 2027, for eligible repurchase agreements, known as repos
- If both obligations qualify for netting through the same clearinghouse, the cash payment can be reduced to $5
- Armed with a classical education and an eye for news, Andjela dove head deep into the crypto industry in 2018 after spending years covering politics
Summary
01 The SEC is requiring more eligible Treasury trades to pass through central clearing. 02 Stablecoin issuers depend on Treasury liquidity when converting reserves into dollars for redemptions. 03 Clearing could improve dealer capacity while leaving some issuers facing higher access and collateral costs. US government debt is one of the easiest assets in the world to borrow against, which lets financial companies get cash without giving up their investments for good. Washington is rewriting the rules for that borrowing, and the result will reach crypto through the companies that keep Treasury securities behind their dollar tokens.