CoinDesk
Treasury Secretary Scott Bessent said digital assets could strengthen the U.S. dollar's global dominance as technology becomes a larger source of economic influence. Speaking at Ripple's Swell conference, Bessent said the U.S. must win the digital-asset stack as it competes with China across artificial intelligence, semiconductors and financial infrastructure.
Why it matters
Bessent linked the administration's crypto agenda directly to dollar power. He argued that stablecoins can bring dollar access to emerging-market users seeking protection from inflation and currency devaluation, rather than simply replacing dollars already held in traditional accounts.
More than 90% of stablecoins are backed by U.S. dollars, Bessent said, while issuers often hold U.S. government securities as reserves. That structure could expand demand for both dollars and Treasury debt as stablecoin adoption grows. The GENIUS Act, which established federal stablecoin rules, is central to that strategy.
Market impact
The remarks give stablecoin regulation a broader policy role: not just consumer protection or market oversight, but a potential channel for extending dollar use worldwide and financing the U.S. government. Bessent described stablecoins as a way to open new markets and called them an important potential source of Treasury funding.
The administration's wider crypto push still faces a legislative setback after Congress failed to pass the Clarity Act. Bessent said Treasury could work with the SEC and CFTC to develop clearer rules and safeguards against debanking, while acknowledging that agency action would not have the permanence of legislation. For crypto businesses, the next signal is whether those agencies can provide practical clarity before Congress delivers a broader framework.
Frequently asked questions
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How does Bessent believe stablecoins could strengthen the dollar?
Bessent said stablecoins can give emerging-market users access to dollars when local currencies face inflation or sharp devaluation, expanding global use of the currency.
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Why could stablecoins increase demand for U.S. Treasury debt?
More than 90% of stablecoins are dollar-backed, and issuers often hold U.S. government securities as reserves. Wider adoption could therefore increase demand for Treasury debt.
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What role does the GENIUS Act play in the administration's strategy?
The GENIUS Act established federal rules for stablecoins, providing the regulatory foundation Bessent linked to wider dollar access and digital-asset adoption.
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What happens after Congress failed to pass the Clarity Act?
Bessent said Treasury could work with the SEC and CFTC to advance crypto oversight through agency action, although those rules would be less permanent than legislation.
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How did Bessent address crypto debanking concerns?
He said regulators could establish best practices and guardrails to prevent financial institutions from cutting off services to digital-asset businesses.
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