U.S. National Debt Reaches Record $37.9 Trillion

TLDR

• U.S. national debt now totals $37.9 trillion, a record high.
• Federal debt increased by $2.17 trillion in fiscal year 2025.
• Interest payments exceed $1.2 trillion annually, second-largest budget item.

The U.S. national debt has reached a record $37.9 trillion, according to recent reports. This milestone reflects a daily increase of $25 billion, putting the federal debt at a critical level. According to data from the U.S. Treasury and Congressional committees, this figure marks a significant rise in national financial obligations.

Key stakeholders in fiscal policy, such as David Schweikert, Chairman of the Joint Economic Committee, and Senator Schmitt, Vice Chairman, have expressed concerns about this development. They emphasize the unsustainable nature of the current deficit spending and urge Congress to take action. The Committee for a Responsible Federal Budget, led by Maya MacGuineas, has also highlighted the imbalance between spending and revenue.

National Debt Growth and Fiscal Implications

The federal debt has increased by $2.17 trillion in fiscal year 2025. A significant portion of this debt, amounting to $30.28 trillion, is held by the public, representing nearly 115.5% of the Gross Domestic Product (GDP). This high level of debt underlines the extent to which borrowing and fiscal measures have surpassed economic growth.

The government is now reportedly spending over $1.2 trillion annually on interest payments, ranking it as the second-largest budget item following Social Security expenditures. This trend raises concerns about the future allocation of federal funds, as interest payments could eclipse other critical spending areas like defense.

Potential Ripple Effects on Digital Assets

While macroeconomic instability stemming from rising U.S. debt typically supports assets such as Bitcoin (BTC) and Ethereum (ETH), no official changes in on-chain DeFi metrics have been attributed solely to the current debt level. These assets are often favored during fiat currency concerns but require further observation to determine their reaction to this fiscal milestone.

Historically, debt ceiling crises have led to market volatility and increased demand for safe-haven assets. However, institutional reports from the current cycle have not specified any direct impact on the cryptocurrency market. As of now, no primary statements from major cryptocurrency leaders are available regarding this issue.

Stakeholder Perspectives on Federal Spending

David Schweikert has made it clear that current deficit spending levels, growing by $68,902 every second, present a severe risk to the economy. “We’re getting dangerously close to the point where most of our federal budget will go toward paying interest on the debt. In fact, it’s already the second-largest expense we have,” Schweikert remarked.

Senator Schmitt echoed these sentiments, stating that America’s national debt is a threat to future prosperity. He emphasized the need for Congress to address this issue by balancing the budget and controlling spending. On the analysis side, Maya MacGuineas has expressed that the gross national debt is a harsh reminder of federal financial mismanagement, with spending and revenue remaining significantly out of balance.

Future Outlook and Market Considerations

This record debt level has raised alarm among economic experts, highlighting the ongoing challenges of national fiscal management. Although the full impact on cryptocurrencies and other investment areas remains to be seen, the rise in debt could contribute to increased interest in non-sovereign assets.

Macro stress from rising debt underscores the tail risk for financial markets, directing attention towards hard assets, including major Layer 1 tokens like BTC and ETH. This scenario may evolve as fiscal and monetary policies respond to the growing debt burden.