US Treasury Secretary Scott Bessent contends that President Donald Trump’s strong backing for cryptocurrencies, particularly stablecoins, will shore up and perhaps even enhance the US dollar’s supremacy in the international marketplace. In a video interview on Wednesday on platform X, Bessent stated that stablecoins could help reduce global financial risk and strengthen the US dollar’s dominance. He explained that stablecoins have the potential to become one of the largest purchasers of the US Treasury, thereby reinforcing the dollar’s position in the global economy. He said that this could significantly boost global demand for US government debt, adding that there was a strong possibility crypto could ultimately be the key factor in securing the dollar’s long-term supremacy. His remarks came a day after the US Senate approved historic stablecoin legislation . The bill aims to establish a national set of regulations for stablecoin issuers and standards for licensing and compliance. Now, the House of Representatives will have to decide whether to consider the Senate bill or move forward with its own, which made its way through the House Financial Services Committee earlier this year. Whichever of these prevails, President Trump has been very clear that he wants legislation done and on his desk by August. So they see crypto, particularly stablecoins, as a strategic innovation that can entrench American financial leadership in the digital age. Exploding stablecoin market on the horizon, Bessent confirms With major traditional financial institutions poised to enter the stablecoin market, firms like JPMorgan Chase and Bank of America, along with some prominent voices, including Bessent, see the stablecoin market as set to grow into the trillions of dollars. And this is just the start, says Bessent. Last week, he forecasted stablecoins backed by US dollars might achieve a total market capitalization of over $2 trillion by the next three years, nearly a ten-fold increase from the reported current market cap of around $240 billion, according to information from The Block. Bessent emphasized that the issue extended beyond just crypto, saying it was about constructing the financial infrastructure for the next generation of the global economy, an infrastructure built around the US dollar. Tether, which is based in El Salvador, is the market leader with its stablecoin. Yet Bessent thinks American financial institutions, with an assist from the policy front, will soon lead a world similar in size to the one in which WeWork aspires to play a driving role. He stated that US-based stablecoins could become the foundation of global digital payments. According to him, they have the potential to democratize access to US dollars, increase demand for Treasuries, and extend American financial influence across the internet. Biden gets roasted for his crypto neglect Bessent also used the opportunity to hit the former president, Joe Biden administration’s crypto policy, which many in the industry thought was overly regulatory. Asked whether the Biden administration had “constrained” the crypto sector, Bessent countered that “constrain” was too mild a term; the administration effectively had tried to make it extinct. Instead, he accused the Biden-era regulators of ignoring innovation and creating uncertainty, sending companies, talent, and capital overseas. The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) were the target of constant criticism by the Biden administration for their regulatory strategy, their industry-derided “regulation by enforcement” in particular. It left a lot of crypto projects and exchanges operating in a legal gray area without much clarity. The contrast under Trump is stark. His administration has suggested a willingness to work with the crypto industry and a desire to develop a future-focused regulatory regime that safeguards consumers without squelching innovation. Bessent is among several other crypto-friendly Trump recruits to join other officials to fulfill a broader mandate to make the US a worldwide center for the innovation of digital assets. Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
