In 1969, the U.S. federal government clearly stipulated in the law that the sources of funds formed by banks' use of government bonds for repurchase agreements are not subject to the restrictions on statutory deposit reserves. This further promoted banks to actively participate in repurchase agreement transactions, and the content of repurchase agreements was mainly concentrated on treasury bills and local government bonds. Beginning in the 1960s, when the cloud of inflation began to hang over the entire Western world, the repurchase agreement market ushered in an unexpected golden period. With market interest rates soaring, financial executives of most Western companies are eager to find appropriate investments for the short-term funds they hold. The active participation of enterprises in the repurchase agreement market has brought a large number of investors.

In addition to enterprises and commercial banks, local governments at all levels in the United States have also become beneficiaries and active advocates of the repurchase agreement market. Because according to U.S. law, idle funds of local governments at all levels in the United States must be invested in government bonds or held in the form of bank deposits, and the integrity of the funds must be guaranteed. In the past, this has significantly limited the financial flexibility of local governments. The repurchase agreement market provides an investment channel that not only invests in government bonds, but also has repayment guarantee. It is therefore not surprising that the government has become an active participant in this market.

Currently, the U.S. repurchase agreement market is the largest repurchase agreement market in the world. As early as the early 1990s, the daily trading volume of overnight repurchase agreements was well over $10 billion. Mutual funds with hundreds of billions of dollars in short-term funds are the largest investors in this market. For them, it is commonplace for an investment fund manager to do hundreds of millions of dollars in repurchase agreement transactions every day through the same broker.