U.S. Treasury Secretary Scott Bessent recently stated in a series of public remarks and social media posts that stablecoins not only pose no threat to the U.S. dollar’s global dominance but could in fact serve as a key instrument in reinforcing what he called “dollar hegemony.” He urged Congress to swiftly pass federal crypto legislation—particularly the GENIUS Act, which was approved by the Senate earlier this week—to ensure the United States maintains a leadership position in the global digital asset race.
Stablecoins as a “Strategic Weapon” for Dollar Power
Posting on X (formerly Twitter), Bessent declared, “Crypto is not a threat to the dollar,” and instead called it “one of the most important phenomena of our time.” He emphasized that stablecoins—digital assets typically pegged to the U.S. dollar—can drive global use of the dollar and may even become major purchasers of U.S. Treasuries and bonds.
“Imagine people in countries like Nigeria using dollar stablecoins to transact without ever needing physical cash,” Bessent said in an interview with the New York Post. “This not only extends the dollar’s influence but also builds a more efficient, digital financial infrastructure.”
He warned that continued U.S. inaction could allow countries like China to seize control of the stablecoin space. “This isn’t a debate over a tech tool—it’s a question of who controls the future of global finance.”
Political Crossfire Over the GENIUS Act
Bessent’s strong defense of stablecoins comes as former President Donald Trump intensifies pressure on Congress to pass the GENIUS Act. The legislation aims to create a federal regulatory framework for stablecoins and digital assets. Its passage in the Senate this week marked a major reversal after the bill was shelved last month due to a failed procedural vote.
Yet hurdles remain. Some Democratic lawmakers had previously withdrawn support due to concerns over national security provisions and potential conflicts of interest involving the Trump family’s financial ties. Bessent expressed frustration over the political gridlock, writing on X, “The world is watching, and U.S. lawmakers are doing nothing.”
He added, “The Senate’s failure to move this bill forward is a missed opportunity to demonstrate global leadership. If we don’t step up, we’ll watch innovation in digital assets migrate overseas.”
Industry Applause and Caution
Despite the legislative impasse, the crypto industry has broadly welcomed the Senate’s move. Ira Auerbach, head of stablecoin platform Tandem under Offchain Labs, told Decrypt, “The market is currently operating under a guessing game of rules, and that’s unsustainable for such a fast-moving industry.”
Auerbach urged lawmakers to distinguish stablecoins from other volatile crypto assets like meme coins or trading tokens. “These are fundamentally different issues,” he said, arguing that speculative risks should not hinder the development of robust payment infrastructure.
Still, legal experts cautioned against the potential political fallout. Alexander Urbelis, general counsel at ENS Labs, warned that the GENIUS Act’s perceived alignment with the Trump family’s private interests “could seriously undermine public trust in the legislative process.”
He also expressed concern that in an era where social media often abandons fact-checking and deepfakes run rampant, conspiracy theories about dollar mismanagement could “erode public confidence” and have “global financial consequences.”