Tuesday night’s midterm elections in the United States delivered as clear as a result they could. The Democrats won a resounding victory in both the House and the Senate, far exceeding expectations. For President Donald Trump this has been the strongest defeat in Congress since his first election as president in 2016 and the toughest Republican setback since Nixon’s Watergate scandal in 1972.

In the House, Democrats are projected to gain more than 40 seats, bringing their total to a majority of more than 250 of 435. In the Senate, the situation is even clearer: Democrats have flipped between 7 and 9 seats, meaning they will reach a 54- or 56-seat majority out of 100. 

That Democrats would gain the House was to be taken almost for granted: the Republicans held a very slim majority and, in midterm elections, the party that holds the presidency usually net loses a few seats (notable exception being the 2002 election, when, in the aftermath of 9/11, the country rallied behind Bush’s Republican Party). However, the sheer magnitude of the victory is remarkable. This could.

Expand the base of stablecoins with a full, audited public inventory of sovereign assets, a proposal to shore up US public debt and to begin reinventing the global financial system.

Stablecoins are moving from the fringes of crypto to the center of finance. The US Genius Act requires issuers to hold reserves one-for-one in cash, deposits, and short-term Treasuries. That makes a digital dollar redeemable. It does not answer a deeper question: what makes money stable?

For a stablecoin, the answer is liquidity. The closer the reserves are to cash, the more credible the promise of redemption. But a token can remain redeemable for exactly one dollar while that dollar loses purchasing power. Redemption and value are different things.

Value ultimately rests on the sovereign behind the dollar. A Treasury bill is a claim on the US government: its power to tax, to borrow, and to honor its obligations. As stablecoins grow, so will their appetite for those claims. Issuers are already significant buyers.

Yet we examine only half of the balance sheet. Debt is.