His $1 trillion determine was an argument about potential demand, not an quantity the US has misplaced or a proper estimate of the price of a selected restriction. Chandhok additionally didn’t establish one rule within the provided remarks as the reason for that potential loss.
Why Chandhok sees $1 trillion in stablecoin demand
For Chandhok, the enchantment begins with entry to {dollars} exterior the US. Greenback-backed stablecoins let holders switch a digital declare tied to the foreign money with out ready for every fee to go via a standard worldwide financial institution switch.
The Circle government tied that time to cash already transferring via banks. He estimated that roughly $3 trillion is in transit throughout the worldwide banking system at any second, the place it’s idle as a result of, as he put it, “the know-how and the settlement protocols are very outdated.”
Circle has pursued that fee use case via $USDC, its greenback stablecoin. In July, the corporate and Fireblocks related $USDC settlement instruments for establishments. Their association gave Fireblocks clients entry to Circle’s Gateway and Funds Community, together with a route for $USDC transfers that finish in local-currency payouts via suppliers in additional than 50 international locations. The businesses stated these funds can settle in minutes, in contrast with the multi-day processes utilized by some correspondent banking routes.
Fireblocks stated stablecoins made up 69% of the digital asset transaction quantity on its platform in the course of the second quarter of 2026. Circle’s Gateway lets taking part establishments handle a unified $USDC steadiness throughout supported blockchains, whereas Fireblocks applies controls equivalent to transaction approvals and sanctions screening to transfers and payouts.
How stablecoins might have an effect on US Treasury demand
Chandhok’s argument additionally has a US authorities debt dimension. Underneath the $GENIUS Act, permitted fee stablecoin issuers should maintain reserves a minimum of equal to the tokens they subject. Eligible reserves embrace {dollars}, sure deposits, short-term US Treasury securities and different qualifying belongings.
Earlier in September, a report on abroad stablecoin discussions stated US officers had been contemplating methods to help private-sector greenback stablecoin initiatives overseas. The report cited a Treasury Borrowing Advisory Committee presentation that examined how adoption by abroad customers who didn’t beforehand maintain {dollars} might enhance demand for short-term Treasury debt.
The committee’s evaluation described a doable consequence relatively than a authorities dedication to advertise any issuer. Utilizing knowledge via September 2025, it estimated that Tether and Circle had elevated their Treasury invoice holdings by $70 billion since 2022. The excellence issues for Chandhok’s declare: demand for stablecoins might carry cash into greenback belongings, however his remarks didn’t set up that each greenback of extra token demand would change into a Treasury buy.
US regulators are nonetheless working via the principles that issuers must observe. On Sep. 24, the Federal Reserve issued proposed stablecoin reserve guidelines and a separate proposal overlaying purposes by insured state member banks in search of to subject fee stablecoins. The Fed recognized short-term Treasury payments among the many belongings that would again tokens issued by companies it supervises.
The proposals additionally set out how the Fed would evaluate financial institution purposes. Underneath the $GENIUS Act, the company has 120 days to determine as soon as an utility is considerably full, whereas events have a 60-day remark interval after the notices seem within the Federal Register. Treasury has recognized Jan. 18, 2027, because the anticipated efficient date for the legislation’s fundamental issuer restrictions, though the statute permits an earlier begin after remaining implementing guidelines are issued.
Circle’s $USDC push extends to AI funds
The Moonshots dialogue centered on an financial system through which software program brokers perform duties and funds. Circle has been constructing instruments for that use case alongside its institutional settlement providers.
In August, a report on Circle’s agent fee exercise stated the corporate had launched Agent Stack in Might to let software program brokers maintain belongings and make programmed funds. Circle reported greater than 900 paid providers utilizing the platform by the second quarter and stated $USDC accounted for 99.3% of fee quantity on the x402 agent protocol. These figures describe exercise on that protocol, not the dimensions of the complete AI funds market.
Bernstein analysts cited agent funds among the many doable sources of future $USDC demand. In the identical August evaluation, they stated adjusted stablecoin transaction quantity, excluding bots and high-frequency exercise, had reached about $11 trillion in 2025 and was working at an annualized price of roughly $17 trillion via July 2026. The brokerage stated Circle might develop even when Congress didn’t go the CLARITY Act in the course of the September session.
Wooden places nuclear energy on the middle of AI prices
Wooden approached the agentic financial system from its vitality wants. She argued that US nuclear regulation had raised electrical energy prices and made the facility wanted for AI knowledge facilities costlier.
“If we had not regulated nuclear energy, electrical energy costs in america can be 50% of what they’re now. It’s a travesty,” Wooden stated. She referred to as regulation “a menace.” Her 50% determine was her evaluation; the remarks offered no calculation exhibiting what electrical energy costs would have been below a special regulatory historical past.
On robotics, Wooden stated humanoid machines current a more durable engineering drawback than robotic taxis. “In comparison with a robotic taxi, a humanoid robotic is nearly 1,000 occasions extra advanced,” she stated. Whereas Elon Musk has mentioned a late-2028 to 2029 timeline, Wooden stated $ARK expects humanoid robots later and described Musk’s schedule as “Elon time.”
Wooden additionally stated healthcare traders are cautious about funding AI as a result of errors in care carry completely different penalties from failures in lots of different know-how merchandise. Mostaque, in the meantime, contrasted public attitudes towards AI, saying roughly 80% of People concern it whereas roughly 80% of individuals in China view it positively.
