24/7 Cryptocurrency News

Breaking: US Treasury Seeks More Time For Making Payments As Debt Default Looms

With the US looming in debt ceiling talks, the Treasury department has asked federal agencies if payments could be made on a later date.
Published by
Breaking: US Treasury Seeks More Time For Making Payments As Debt Default Looms

In a race against time, President Joe Biden and top Republican Kevin McCarthy are set to resume discussions on the debt ceiling deal following the ineffective talks held on Monday. As the possibility of the United States defaulting on its debt becomes increasingly imminent, the Treasury Department is taking steps to prevent an unprecedented default, including asking federal agencies about the flexibility of upcoming payments.

Advertisement

Treasury Seeks Delay In Payments

With less than two weeks remaining before the looming deadline, the White House is urgently seeking avenues to buy more time for negotiations between President Biden and House Speaker Kevin McCarthy to raise the federal debt ceiling. In the early part of June, the federal government faces the possibility of missing a payment for the first time in modern history if additional borrowing, increased tax collection, or spending reductions are not implemented.

Read More: Stocks And Crypto May Crash Within Weeks Of Debt-Ceiling Deal; Here’s Why

According to reports, Treasury officials have reached out to counterparts in other federal agencies to inquire about the possibility of delaying payments due before early June. However, it is important to note that the Treasury has not requested federal agencies to postpone payments beyond their original due dates. Earlier last week, senior members of the Treasury Department circulated a memo to federal agencies instructing them to take certain additional steps in order to keep the department closely informed of their spending.

Advertisement

US Might Have A Trick Up Its Sleeve

By stalling payments until June 15, the surge in quarterly tax payments expected to arrive in the Treasury’s records might provide enough funding to push the default deadline further into July. This would allow for a fresh round of accounting measures, offering additional flexibility to avoid default in the near term.

While speaking on this development to Washington Post, Marc Goldwein, senior vice president at the Committee For Responsible Federal Budget noted that it’s possible for the US government to try new tricks to stall till June 15. “And if they get to June 15, they can go a lot longer”, Goldwein added.

While the Treasury Department’s efforts to extend the deadline are viewed as a potential solution by some, Treasury Secretary Janet Yellen has been resolute in her belief that avoiding calamity can only be achieved through timely action from Congress. In a letter addressed to lawmakers on Monday, Yellen highlighted that the federal government may exhaust its cash supply as early as June 1, although she expressed hope that Treasury could hold out until early June. Wall Street forecasters, including Goldman Sachs, suggest that the true deadline for a missed payment is likely to fall around June 8 or 9.

Meanwhile, according to economists and market experts, failure to reach a deal by June 1 could have dire consequences, triggering an unprecedented market crash and a looming recession. Furthermore, extending the deadline itself could inadvertently create volatility in both equities and the crypto market, as investors remain uncertain about the brewing default scenario.

Also Read: Kevin McCarthy Says Talks Nowhere Near Debt Ceiling Deal

Advertisement

Share
Coingapestaff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

El Salvador’s Bitcoin Holdings Hit $475M Profit as BTC Becomes World’s 7th Largest Asset

El Salvador is now sitting on $482 million in unrealized gains in its Bitcoin holdings.…

October 5, 2025
  • Bitcoin News

Breaking: Bitcoin Hits New ATH Above $125k as ‘Uptober’ Kicks Off in Full Force

The Bitcoin price has hit a new all-time high, after staging a monstrous rally since…

October 5, 2025
  • Bitcoin News

99.3% of Bitcoin Supply in Profit, Analyst Warns of Short-Term Correction

Bitcoin (BTC) is in profit on almost all of its supply, leading to discussion by…

October 5, 2025
  • 24/7 Cryptocurrency News

Pro-Crypto Mike Selig Emerges As CFTC Chair Frontrunner, Gains Ripple CLO’s Endorsement

Pro-crypto Mike Selig is reportedly the frontrunner to become the next chair of the U.S.…

October 4, 2025
  • 24/7 Cryptocurrency News

‘Every Crypto ETF You Can Imagine’: Expert Predicts Flurry of Filings After REX-Osprey’s 21 Applications

Nate Geraci, president of Novadius Wealth Management, has predicted that several crypto ETF filings could…

October 4, 2025
  • Bitcoin News

Robinhood Lists Strategy’s Bitcoin-Backed Stocks, Boosting Saylor’s BTC Credit Model

Bitcoin-backed stocks of Strategy can now be accessed on Robinhood. This represents a significant move…

October 4, 2025