How would this work "Putin’s advisor Kobyakov says the U.S. is using crypto to reduce its $35 trillion debt"

As I understand it the banks purchase treasuries and then issue stable coins against the dollar value of the stable coin ie genuis act.

would the stable coin peg need to be broken, how would this relive the debt burden and how this would unfold.

Is the argument that one day the government would create another 'extra genius' act that would say ok banks you no longer need to hold as much treassury reserves... the banks can now issue double the amount of stable coins for every treassury bill.... how would this help the government acutally reduce the amount of debt though because the banks would still be holding the same number of treasuries so the debt burden hasnt changed.