US Treasury Secretary Announces Stablecoin Strategy to Boost Dollar Dominance as Stocks Surge
1min read On March 7, during the White House Crypto Summit, United States Treasury Secretary Scott Bessent announced that the US government plans to utilize stablecoins to maintain the US dollar's status as the world's global reserve currency. This announcement is part of a broader strategy to ensure the dollar's dominance in the global financial system. Bessent reiterated the Trump administration's commitment to ending the "war on crypto" and rolling back previous IRS guidance and punitive regulatory measures. He emphasized the administration's focus on stablecoins, stating that the US will use these digital assets to keep the dollar as the dominant reserve currency. President Trump also expressed his hope that lawmakers will pass a comprehensive stablecoin regulatory bill before the August Congressional recess.
The White House Crypto Summit marked a significant shift in the US government's stance towards the digital asset industry. Many attendees noted the historic nature of the event, which underscored the administration's proactive approach to integrating digital assets into the financial landscape. The summit also saw criticism from President Trump directed at the Biden administration for selling portions of seized Bitcoin, which he claimed resulted in billions of dollars in losses due to premature selling.
Stablecoins, particularly overcollateralized ones backed by short-term US Treasury bills and cash deposits, have been proposed as a means to extend US dollar dominance. These stablecoins drive demand for US debt instruments, thereby supporting the dollar's global standing. Federal Reserve Governor Christopher Waller also supported this view, arguing that stablecoins could mitigate the corrosive effect of cryptocurrencies on the US dollar's market share. In February 2025, Waller reiterated his stance that stablecoins could help preserve the dollar's status as the global reserve currency by overcoming capital controls in foreign countries and enhancing payment rails.
This effort to leverage stablecoins to defend the US dollar led to the introduction of the Stable Act of 2025 by US representatives French Hill and Bryan Steil. This bill aims to establish a comprehensive regulatory framework for dollar-pegged digital fiat tokens. The Trump administration's strategy to use stablecoins to ensure the US dollar's hegemony reflects a broader recognition of the potential of digital asset technology in maintaining the dollar's global dominance. By integrating stablecoins into the financial system, the US aims to secure its position as the leading global reserve currency.
