Former U.S. Treasury Secretary Warns of Potential Demand Collapse in U.S. Treasury Market; Urges Advance Preparation of Emergency Response Plans

According to Cointelegraph, former U.S. Treasury Secretary Henry Paulson warned that U.S. authorities should prepare short-term, targeted contingency plans in advance for a potential collapse in future demand for U.S. Treasuries. He stated that once such a crisis emerges, the impact would be extremely severe. The U.S. Treasury market is regarded as the cornerstone of the global financial system; its instability could ripple across asset pricing—including corporate bonds, mortgages, and equities. The report notes that if the crisis undermines confidence in the U.S. dollar, it could drive capital toward alternative stores of value such as Bitcoin and gold; however, Tether—which holds U.S. Treasuries as its primary reserve asset—could also face redemption pressure and de-pegging risks.