US Treasury Secretary Announces Stablecoin Strategy to Boost Dollar Dominance as Stocks Surge
1min read United States Treasury Secretary Scott Bessent announced that the US government will utilize stablecoins to maintain the US dollar's position as the world's global reserve currency. This declaration was made during the White House Crypto Summit on March 7, where Bessent emphasized the administration's commitment to ending the war on crypto and rolling back previous irs guidance and punitive regulatory measures. He specifically highlighted the importance of stablecoins in this strategy, stating that the US will use these digital assets to keep the dollar dominant.
President Trump, during the summit, expressed his hope that lawmakers would pass a comprehensive stablecoin regulatory bill before the August Congressional recess. He also criticized the Biden administration for selling portions of seized Bitcoin, which he claimed resulted in significant losses due to premature selling. The summit marked a significant shift in the US government's stance towards the digital asset industry, with many attendees noting the historic nature of the event.
Stablecoins, particularly overcollateralized ones, have been proposed as a means to extend US dollar dominance. These stablecoins use short-term US Treasury bills and cash deposits to back their digital fiat tokens, thereby driving demand for US debt instruments. Federal Reserve Governor Christopher Waller also supported this idea, arguing that stablecoins could mitigate the corrosive effect of cryptocurrencies on the US dollar's market share. Waller's stance was reiterated in February 2025, where he emphasized that stablecoins could help preserve the dollar's status by overcoming capital controls in foreign countries and enhancing payment rails.
In line with this strategy, US representatives French Hill and Bryan Steil introduced the Stable Act of 2025. This bill aims to establish a comprehensive regulatory framework for dollar-pegged digital fiat tokens, further solidifying the US government's efforts to leverage stablecoins in defending the US dollar's global dominance. The administration's focus on creating a bipartisan regulatory framework for these digital assets underscores their commitment to promoting responsible financial practices while ensuring the US dollar's continued dominance in the global market.
David Sacks, an advisor to the Trump administration, also expressed support for using stablecoins to strengthen the US dollar's dominance. His views align with the administration's broader strategy, which seeks to integrate digital asset technology into the existing financial infrastructure. This approach is seen as a way to ensure that the US dollar remains a stable and reliable currency for international transactions, even as other countries explore the use 