U.S. Treasury Secretary Scott Bessent predicts that stablecoins will generate demand for $2 trillion in government debt and supports key legislation to regulate the cryptoasset market, seeking to consolidate the country's leadership in the digital economy.
In recent remarks before Congress, Scott Bessent noted the importance of the United States leading the creation of global standards for cryptoassets and mark the global course of this growing industry. In his opinion, the country should position itself as the main destination for the development of cryptocurrencies and digital assets, underscoring its growing relevance in the global economy.
Bessent believes that stablecoins will become a fundamental pillar for the demand for public debt in the country, estimating that these digital currencies could generate additional demand for up to $2 trillion in Treasury bondsThis estimate reflects the growing institutional interest and integration of digital assets into traditional financial markets, as well as the potential for stablecoins to strengthen the dollar's position globally.
ACCESS AND OPERATE EASILY AND SECURELY WITH STABLECOINSDuring his remarks, the Treasury Secretary supported the need to create a clear and effective regulatory framework for stablecoins and the cryptoasset market in the country, expressing his strong support for legislative initiatives seeking to regulate this emerging market.
Bessent's stance aligns with the U.S. government's efforts to position the country as a global leader in digital financial innovation, seeking to balance the promotion of innovation with investor protection and the stability of the financial system. However, legislative progress on this issue faces challenges, such as recent resistance to key bills, including the GENIUS Act, which seeks to regulate stablecoins and is still under debate in the Senate.
The rise of stablecoins as a driver of US public debt
The United States seeks to consolidate itself as the main destination for digital assets, according to said Bessent, during his appearance before the House Financial Services Committee. Bessent stressed the importance of creating a robust market structure that allows for U.S. best practices to be adopted globally, aligning with President Trump's agenda of turning the country into the “crypto capital of the world”.
In this regard, he highlighted that stablecoins have gained importance by offering stability in the crypto market. Unlike cryptocurrencies like Bitcoin or Ethereum, these digital currencies maintain a stable value pegged to fiat currencies, primarily the US dollar, making them useful for trade, savings, and remittances, thus facilitating greater mass adoption.
The backing of stablecoins with safe haven assets like US Treasury bonds creates a direct link to government debt. Therefore, as demand for stablecoins grows, so does the need to acquire these backing assets, which drives demand for government debt and can positively influence government debt financing and management.
Bessent emphasized the need to establish appropriate regulations to mitigate potential risks and ensure the safe and sustainable development of the digital market.
THE TRUST YOU DESERVE – BIT2ME LIFEHow is stablecoin regulation progressing?
The debate over stablecoin regulation in the United States has advanced significantly this year, driven by the growing popularity of these digital assets and the push to establish a clear legal framework. Currently, two main legislative proposals are at the center of discussion: the STABLE Act and the GENIUS Act. Both seek to impose strict requirements on stablecoin issuers, such as 1:1 backing with high-quality liquid assets, monthly audits, and mandatory public disclosure of their reserves, with the goal of increasing transparency and protecting consumers.
The STABLE Act recently passed the House Financial Services Committee with bipartisan support and is now headed for a floor vote. The GENIUS Act, meanwhile, has already cleared the Senate Banking Committee and also proposes limiting stablecoin issuance to authorized entities and classifying them as financial institutions under the Bank Secrecy Act. However, both initiatives face political hurdles, particularly due to national security concerns.
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President Donald Trump has expressed his support for the regulation, calling it key to strengthening the dollar's global dominance and promoting financial innovation. However, for a final law to be enacted, Congress will need to reconcile the differences between the two proposals.
Experts have noted that the general consensus indicates that stablecoin regulation is imminent in the country, although debates persist over the details and scope of these new regulations.
US Leadership in the 21st Century Digital Economy
U.S. Treasury Secretary Scott Bessent's support for stablecoin legislation reflects a clear strategy to maintain the country's leadership in the global digital economy. Bessent has repeatedly emphasized that a robust regulatory framework for stablecoins would not only drive innovation in the cryptocurrency sector but also strengthen the U.S. dollar's position as an international reserve currency. This view is shared by both the current administration and lawmakers from both parties, who recognize that a lack of regulation could leave the United States lagging behind other powers and weaken the dollar's global influence.
Stablecoins, backed by assets such as Treasury bonds and cash deposits, can increase demand for US government debt and bring stability to the financial system. Furthermore, they facilitate the adoption of cryptocurrencies by the general public and open up new opportunities for financial innovation, both in the retail and institutional sectors. Hence the importance and urgency of clear regulation.
Trade stablecoins on Bit2MeBessent's projections are part of a broader expectation regarding crypto regulation. Experts believe that comprehensive regulations for stablecoins could be approved before the end of the year, with the aim of consolidating the United States as the epicenter of digital assets and ensuring the dollar's hegemony in the new financial era.
Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
