The US national debt held by the public has crossed a symbolic and economically significant threshold, surpassing 100% of GDP. The figure now sits between $36 trillion and $39 trillion. The Congressional Budget Office projects that ratio could balloon to 175% of GDP over the next 30 years if current policies persist.

That projection has reignited calls for a constitutional balanced budget amendment. Crypto has inserted itself into the national debt conversation from multiple angles, as both a potential hedge for investors and, increasingly, as an actual participant in US Treasury markets.

The balanced budget push and why it keeps failing

The latest legislative attempt to impose fiscal discipline came through H.J. Res. 139, a proposed constitutional amendment that would require the federal government to balance its budget. It cleared the House Judiciary Committee, then went to the full House floor and failed 211 to 207 in March 2026. Constitutional amendments require a two-thirds supermajority, so this wasn’t even close.

In fiscal year 2025, 36.5% of individual income tax revenue is going toward servicing the national debt.

Stablecoins are now propping up US Treasuries

Tether, the issuer of the world’s largest stablecoin, held over $122 billion in US government securities as of December 2025. That makes Tether a larger holder of Treasuries than many sovereign nations.

Stablecoin issuers need safe, liquid assets to back their tokens, and US Treasuries are the gold standard for that purpose. The US government, meanwhile, needs buyers for its ever-growing pile of debt.

Bitcoin as a national debt hedge

The proposed US Strategic Bitcoin Reserve, alongside the BITCOIN Act, would position Bitcoin as a long-term strategic asset intended to help counterbalance the national debt over time. The US government has already accumulated Bitcoin holdings valued at roughly $29 billion, mostly through seizures related to criminal cases.