U.S. Treasury Secretary Highlights Digital Assets and Dollar Dominance
U.S. Treasury Secretary Scott Bessent says digital assets can reinforce the dollar’s global position despite stalled legislation.
U.S. Treasury Secretary Highlights Digital Assets and Dollar Dominance
U.S. Treasury Secretary Scott Bessent says digital assets can reinforce the dollar's global position despite stalled legislation.
Treasury Focuses on the Digital Asset Stack
U.S. Treasury Secretary Scott Bessent stated that American leadership in the digital asset stack could reinforce the global reach of the U.S. dollar. Speaking at Ripple’s Swell conference in New York alongside CEO Brad Garlinghouse, Bessent argued that the foundations of global reserve-currency power are shifting away from traditional military strength toward technological infrastructure.
Bessent grouped digital assets alongside artificial intelligence and semiconductors as competitive fields where the United States and China vie for dominance. According to the Treasury Secretary, the financial rails chosen by various nations will ultimately shape the future reach and strength of the dollar.
Stablecoins and Treasury Demand
The most direct link drawn by the Treasury involves stablecoins, which are dollar-pegged tokens whose issuers typically hold reserves composed of U.S. Treasury securities. Bessent noted that these tokens provide individuals in countries experiencing high inflation or volatile currencies with easier access to dollars.
CoinGecko data indicates that the share of stablecoins denominated in dollars sits above 98%, led by Tether’s USDT and Circle’s USDC, while Bessent himself put the figure above 90%. Last year, Bessent suggested that stablecoin reserves could eventually generate $2 trillion in short-term demand for Treasuries and bills, depending on supply growth and reserve rules.
Legislative Stalls and Regulatory Gaps
This vision for digital infrastructure unfolds against a backdrop of legislative uncertainty, as the broader CLARITY Act recently failed a Senate procedural vote 49 to 50 on September 15. The legislation, which aimed to establish market-structure rules for digital assets, fell short of the 60 votes required amid disputes over ethics provisions and stablecoin yields.
Bessent expressed disappointment over the setback but indicated that the Treasury could collaborate with the Securities and Exchange Commission and the Commodity Futures Trading Commission to address existing regulatory gaps using its convening powers.
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