VanEck CEO Jan van Eck has warned that Washington's mounting debt could become the source of the next US financial crisis, shifting financial risks away from the banking sector. He also raised concerns about how the government will fund its future spending commitments, particularly as inflation remains a concern.
Speaking on the Pomp Podcast on November 5, van Eck questioned whether the federal government could manage its growing financial obligations without causing wider economic problems. He argued that Washington now faces risks that differ from those behind previous financial crises.
“No one can bail us out,” he said while discussing the government's financial position. His concerns also extend to foreign investors, whose decisions influence demand for US government bonds.
Van Eck pointed to China's declining Treasury holdings as one example. According to US Treasury figures, mainland China held USD 590.7 billion in Treasury securities in August 2026. The amount represents a decline of more than half from the country's peak holdings in 2011.
However, Treasury data cannot identify the final owners of all securities because some investors hold American debt through accounts in other countries.
Van Eck also questioned whether the government would meet all its payment commitments over the next decade. He discussed Social Security as an example of the financial pressure Washington faces.
The Social Security Administration's 2026 trustees report projects that the retirement trust fund will exhaust its reserves in 2032. Without legislative changes, incoming revenue would cover only 78% of scheduled retirement benefits.
Congress could prevent the projected reduction by changing how the program receives funding or pays benefits. However, van Eck questioned whether such measures could avoid creating additional economic costs.
He expects inflation to remain one possible outcome of attempts to manage government debt. He also doubts that advances in artificial intelligence will generate enough savings to resolve the country's financial challenges.
Against that economic background, van Eck recommended holding gold and Bitcoin as potential protection against government spending and inflation. However, he acknowledged that neither investment guarantees positive returns.
He also maintained his long-term confidence in Bitcoin, expecting the cryptocurrency to trade at higher levels over the next decade. He did not provide an exact price target or a specific timetable beyond that period.
Meanwhile, VanEck is placing greater emphasis on actively managed cryptocurrency products. Van Eck argued that financial advisers face difficulties when comparing competing digital assets and blockchain networks.
He suggested that investors who cannot assess individual projects consider diversified funds or professional management. His longer-term outlook favors established blockchain networks and trading platforms, although he expects competition to affect which projects survive.
In a separate development, investor Kevin O'Leary said he expects the US Congress to pass the CLARITY Act in 2027. He linked his prediction to the growing use of blockchain technology in traditional financial services.
O'Leary argued that tokenization could improve financial transactions by allowing institutions to move and manage assets through blockchain networks. He believes demand for more efficient payment systems will encourage lawmakers to approve clearer cryptocurrency rules.
The House approved the CLARITY Act in July 2025 with 294 votes in favor and 134 against. However, the proposed legislation has not completed the Senate approval process.
O'Leary's prediction remains dependent on further congressional action. The legislation would establish rules for digital asset markets and clarify responsibilities between federal financial regulators.