Treasury Secretary: Stablecoins Could Boost Dollar's Global Role

Treasury Secretary Scott Bessent has asserted that cryptocurrencies do not pose a threat to the U.S. dollar. Instead, he believes that stablecoins, a type of cryptocurrency pegged to the value of another asset, could actually reinforce the dollar's global dominance. Bessent highlighted that stablecoins could be used internationally without the need for physical dollars, making transactions more efficient and accessible.

In a recent interview, Bessent explained that someone using a dollar-backed stablecoin in a foreign country could transact without holding physical dollars. This could potentially increase the use of the U.S. dollar globally, as stablecoins could become major buyers of U.S. Treasuries, directly supporting the U.S. economy and contributing to the stability of global financial systems.

Bessent's remarks come on the heels of the Senate's approval of the GENIUS Act, which lays out a federal framework for issuing and trading stablecoins. The legislation aims to establish the U.S. as a leading destination for digital asset innovation. The bill faced hurdles last month when it failed a procedural vote due to concerns from pro-crypto Democrats over national security issues and Trump family business interests. However, President Trump is now pressing the House to pass the GENIUS Act without amendments, urging lawmakers to deliver the bill "ASAP" following the Senate vote.

Bessent acknowledged that digital assets were long overlooked by national governments. He stated that the administration is now committed to supporting crypto innovation in the U.S. This shift in stance represents a critical change in regulatory focus, potentially opening the door to further crypto integration within the financial system. Bessent warned that ignoring crypto is a mistake, as innovation will move offshore if lawmakers fail to act quickly and decisively.