US Dollar Faces Fiscal Dominance as Liquidity Control Shifts from Fed to Treasury, Raoul Pal Warns

COINOTAG News reports on November 20 that Real Vision founder Raoul Pal argues liquidity control could shift from the Fed to the U.S. Treasury. In his view, the Treasury would steer debt financing and rollover, with banks as conduits and bills issued to inject liquidity—a shift he describes as fiscal dominance eroding traditional central-bank independence.

For crypto markets, the discussion highlights crypto liquidity, fiscal dominance, and the thorny question of central bank independence. While presented as theory, investors should monitor how policy signals could influence funding costs, collateral flows, and liquidity channels for digital assets.

Market participants should track official statements and macro liquidity metrics to assess risk management in crypto portfolios implicated by policy-driven liquidity moves.