Bitcoin Magazine has published a new interview with Caitlin Long, founder and CEO of Custodia Bank, exploring fiscal dominance — a monetary setting in which government borrowing needs increasingly shape central bank policy — stablecoins, and the macro case for Bitcoin. The full conversation is available on Bitcoin Magazine.

A central question frames the discussion: will tokenized bank deposits crowd out stablecoins? Long notes that stablecoins total roughly $300 billion against approximately $5.7 trillion in traditional demand deposits, and argues that bringing tokenization into the banking system could be the bigger story. The scale gap is why the question reaches beyond crypto circles: stablecoins are dollar tokens typically issued outside the banking system, while tokenized deposits would remain liabilities on bank balance sheets, so the outcome bears on where dollar balances sit and which institutions manage them.

The interview also examines why the U.S. Treasury wants tokenized dollars and what the Federal Reserve is doing about it. The policy backdrop includes the GENIUS Act, the federal stablecoin statute signed into law in July 2025, whose reserve rules steer stablecoin issuers toward holdings such as Treasury bills — context for the chapter on Tether, new Treasury demand, and the GENIUS Act rules — alongside the Clarity Act, the market-structure legislation still moving through Congress. Elsewhere in the conversation, the eurodollar market — dollar deposits held outside the United States and beyond the Fed's direct reach — the 2023 collapse of Silicon Valley Bank as a case study in fast-moving deposits, and Bitcoin's framing as digital gold for long-term holders round out the historical backdrop.

Chapters:

• 0:00 – Fiscal Dominance and "Nothing Stops This Train": Intro to Caitlin Long
• 1:53 – Why Washington Is Pushing Tokenized Dollars and Where the Fed Stands
• 3:28 – Tether, New Treasury Demand, and the GENIUS Act Rules
• 7:14 – Community Banks vs. Megabanks: The Deposit Flight Debate
• 13:03 – SVB, AI Agents, and a Banking Model Under Pressure
• 16:26 – The Eurodollar Parallel and the Fed's Reluctance
• 19:29 – Tokenized Deposits vs. Stablecoins, and Tokenized Equities
• 26:50 – Treasury Market Stress, Fed Hikes, and the AI Debt Question
• 30:24 – Bitcoin as Digital Gold: Retail Ownership and Holding Long Term
• 35:25 – Treasury Buybacks, Lessons From Volcker, and Life After the Clarity Act

Disclaimer: The views and opinions expressed in this show are those of the participants and do not necessarily reflect the official policy or position of BTC Inc., Bitcoin Magazine, or any affiliated entities. This content is for informational and educational purposes only and should not be construed as investment, legal, tax, or accounting advice. Nothing contained in this show constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or financial instruments. Viewers should consult their own advisors before making financial or business decisions.

This post, Caitlin Long: Fiscal Dominance, Stablecoins & the Macro Case for Bitcoin, first appeared on Bitcoin Magazine and was written by Patrick Green.