- Treasury Secretary Scott Bessent stated that stablecoins can help strengthen the U.S. dollar’s global position.
- President Donald Trump urged Congress to quickly approve the GENIUS Act, which creates federal rules for stablecoins, after the Senate gave its approval.
- The GENIUS Act previously failed a Senate vote because of concerns about national security and possible conflicts of interest involving the Trump family.
- Industry leaders support the Senate’s recent approval but warn that ongoing political disputes could slow progress and undermine trust.
- Some experts worry that perceived ties between the legislation and private interests could damage public confidence.
Treasury Secretary Scott Bessent announced on Wednesday that stablecoins may support the dominance of the U.S. dollar. His remarks followed efforts by President Donald Trump to speed up the passage of the GENIUS Act through Congress after it cleared the Senate this week.
Bessent said stablecoins—digital tokens backed by the U.S. dollar—are an opportunity for the nation to remain at the center of global finance. “Crypto is not a threat to the dollar,” Bessent said in a tweet, adding that digital assets are “one of the most important phenomena in the world right now” but have been overlooked by governments.
The Senate’s approval of the GENIUS Act came after it failed a procedural vote last month, following concerns from some Democrats about national security and possible conflicts of interest linked to the Trump family. Bessent criticized the initial failure, saying “the world is watching while American lawmakers twiddle their thumbs” and warning that the U.S. could risk losing its leadership in digital assets if Congress does not act.
The GENIUS Act would establish clear federal rules for issuing and trading stablecoins, making them easier to use worldwide. Bessent explained in a New York Post interview how dollar-backed stablecoins could let people in countries like Nigeria conduct transactions in U.S. dollars without needing to hold physical cash.
Some industry leaders, like Ira Auerbach from Offchain Labs, welcomed the Senate’s action but highlighted the impact of ongoing political debates. Auerbach said that the lack of clear rules is becoming “untenable for an industry growing at breakneck speed” and suggested that legislation for stablecoins should not be blocked by concerns about other types of digital assets.
Alexander Urbelis, General Counsel at ENS Labs, expressed concern that the GENIUS Act’s “perceived entanglement to the Trump family’s private interests” could reduce public trust and increase political disagreement over crypto-related risks. Urbelis also warned that rumors about the U.S. dollar could spread quickly online and have global effects.
Stablecoins are digital assets usually linked to the value of the U.S. dollar and are used for easier and faster digital transactions. Industry figures expect federal rules could stabilize their use but caution that the political process could still present obstacles.
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