US Treasury Chief: Stablecoins Could Cement Dollar Dominance as Congress Considers GENIUS Act

US Treasury Secretary Scott Bessent is challenging common criticism of digital currencies, arguing that stablecoins could actually reinforce the global preeminence of the US dollar. As Washington debates new crypto legislation, Bessent and other industry leaders urge lawmakers to embrace innovation—or risk ceding economic leadership abroad.

Treasury Backing for Stablecoins Fuels Congressional Debate

Scott Bessent, Secretary of the Treasury, publicly rejected the notion that cryptocurrencies undermine the US dollar, calling digital assets “one of the most important phenomena in the world right now”—an area overlooked by governments for too long. His remarks coincided with President Trump pressing Congress to rapidly pass the GENIUS Act, a bill that would create a regulatory framework for stablecoins. These statements come just after the Senate’s approval of the bill, marking a dramatic turnaround from last month’s failed vote that was derailed by intraparty disagreements over national security and perceived conflicts of interest.

Stablecoins Seen as Boosting Dollar Supremacy—Not Undermining It

Bessent argues that stablecoins—digital assets pegged to the US dollar—could play a major role in securing the currency’s international dominance. Citing global use cases, he explained how individuals abroad could access dollar-backed stablecoins for transactions without ever holding physical cash. Bessent also noted that these tokens could become significant buyers of US Treasury securities, supporting the American financial system. He contrasted this vision with the previous administration’s attempts to stifle the crypto sector, warning that reluctance in Washington may drive blockchain innovation overseas.

Key Stats & Figures

• GENIUS Act Status: Gained Senate approval Tuesday after failing an earlier procedural vote in the previous month.
• Potential Treasury Impact: Stablecoins could become one of the largest buyers of US Treasury bills if adopted at scale.
• Global Access: Dollar-backed stablecoins enable cross-border transactions without the need for physical US currency.
• Political Dynamics: The legislation has reignited debate over national security and conflicts of interest tied to key political figures.

Industry Leaders and Legal Experts Voice Caution Amid Political Uncertainty

Industry figures welcomed the Senate’s move but warned persistent partisanship is impairing clear regulation. Ira Auerbach of Offchain Labs highlighted that the lack of unified rules creates confusion for fast-growing crypto enterprises. He emphasized that stablecoins require their own legal treatment, separate from speculative tokens, cautioning lawmakers not to conflate the two. Meanwhile, concerns over the legislative process linger, especially regarding potential conflicts of interest and the risk of political theatrics undermining credibility in Washington’s approach to crypto regulation.

Conclusion: What This Means for the Market

If Congress succeeds in implementing the GENIUS Act, the US could set a global precedent for stablecoin oversight—supporting both the digital assets industry and the dollar’s global leadership. Failure, however, could drive innovation offshore and fuel public skepticism. As debate continues, the next steps in Washington will shape the future of both cryptocurrencies and America’s economic influence.