Trump’s Crypto Push May Lock In US Dollar Supremacy, Says Treasury Chief

Scott Bessent says stablecoins could strengthen US dollar dominance and reduce federal debt through Treasury bond demand.
The stablecoin market could exceed US$2 trillion (AU$3.07 trillion) by 2028 with regulatory clarity, Bessent projects.
The GENIUS Act, passed 68–30 in the Senate, sets reserve rules and hands oversight power to the Treasury.

US Treasury Secretary, Scott Bessent, has said that the growth of the stablecoin market could help reinforce dollar dominance and reduce federal debt, following the Senate’s approval of the GENIUS ACT. The bill aims to regulate the stablecoin industry and has moved to the House of Representatives after a 68-30 vote.

In an interview posted to X (formerly Twitter), Bessent said that “Stablecoins could reinforce dollar supremacy,” and that they could “end up being one of the largest buyers of US Treasuries.”

Crypto is not a threat to the dollar. In fact, stablecoins can reinforce dollar supremacy.
Digital assets are one of the most important phenomena in the world right now, yet they have been ignored by national governments for far too long.
This administration is committed to… pic.twitter.com/vWsLgYyNW7
— Treasury Secretary Scott Bessent (@SecScottBessent) June 18, 2025

In a separate X post on 17 June, Bessent said that “a thriving stablecoin ecosystem will drive demand from the private sector for US Treasuries, which back stablecoins”.

Bessent has repeatedly argued that stablecoins, when backed by short-dated US Treasuries, will generate new demand from the private sector.

In a separate X post, he wrote, “this newfound demand could lower government borrowing costs and help rein in the national debt. It could also onramp millions of new users – across the globe – to the dollar-based digital asset economy.”.

He projected the US stablecoin market could exceed US$2 trillion (AU$3.07 trillion) by 2028 if regulatory clarity were provided. At present, the market stands at more than US$240 billion (AU$369 billion).

Related: GENIUS Act Anti-Corruption Amendment Planned to Foil Trump Stablecoin Profiteering

Regulatory Framework Takes Shape

The GENIUS Act mandates 1:1 reserves for stablecoins using highly liquid assets, such as short-term Treasuries or insured bank deposits. It prohibits yield payments on stablecoins. The act also requires customer due diligence, Bank Secrecy Act reporting and segregating reserves from operating funds.

Issuers with over US$10 billion (AU$15.37 billion) in liabilities need a federal charter, whilst smaller ones can use state regimes with federal oversight. The Treasury Department will oversee audits and enforcement.

This administration is committed to establishing the United States as a hub for digital asset innovation, and the GENIUS Act moves us one step closer to that goal.

US Treasury Secretary, Scott Bessent