Paul Ryan, the 54th Speaker of the United States House of Representatives, has emerged as a significant advocate for stablecoins, suggesting that regulation could bring positive outcomes to the industry.

In an interview with Bloomberg, Ryan emphasized stablecoins' potential as a solution to the looming US sovereign debt crisis, with the nation currently facing a staggering $34.7 trillion debt and annual interest payments exceeding $1 trillion.

Stablecoins, crypto tokens pegged to relatively value-stable assets like the US dollar, have garnered attention for their utility in crypto trading, borrowing, and lending in decentralized finance (DeFi). Ryan sees stablecoins as a means to access dollar stability in countries where dollars are otherwise inaccessible.

Major stablecoin issuers like Tether and Circle typically back their tokens with short-term US Treasury bills and other dollar equivalent instruments, effectively increasing demand for US government debt.

With the stablecoin market surpassing $140 billion in size, Ryan advocates for regulation, suggesting that bipartisan legislation could provide a legal framework for stablecoin deployment. He highlights ongoing negotiations between Patrick McHenry and Maxine Waters of the House Financial Services Committee as a potential avenue for stablecoin regulation.

Ryan believes that regulation could lead to the deployment of stablecoins on a much larger scale, potentially reaching trillions of dollars, and integrating the dollar into the ongoing digitization of currencies.

His stance underscores a broader trend among Republicans showing support for the crypto industry. Even former President Donald Trump, who previously criticized Bitcoin, has shifted his position, pledging to support crypto in America.

Ryan's advocacy for stablecoins regulation aligns with efforts to address financial stability concerns while harnessing the potential of digital currencies in the modern economy.