David Edwards
United States Treasury Secretary Scott Bessent announced that the U.S. government will harness stablecoins to reinforce the U.S. dollar’s global reserve currency status. Speaking at the White House Crypto Summit on March 7, Bessent underscored the administration’s commitment to integrating digital assets into financial policy.
During his address, Bessent reaffirmed the Trump administration’s pledge to end restrictive crypto policies, including reversing prior IRS guidance and easing regulatory constraints. He emphasized the role of stablecoins in maintaining dollar supremacy, stating:
“We are going to put a lot of thought into the stablecoin regime, and as President Trump has directed, we are going to keep the U.S. [dollar] the dominant reserve currency in the world, and we will use stablecoins to do that.”
President Donald Trump urged lawmakers to pass a comprehensive stablecoin regulatory framework before the August Congressional recess, reinforcing his administration’s focus on digital asset adoption.
Criticism of Prior Bitcoin Sales and Policy Shifts
Trump also criticized the Biden administration for its handling of seized Bitcoin holdings, arguing that premature sales resulted in substantial financial losses. His remarks reflected a broader shift in federal policy, signaling a more favorable regulatory environment for digital assets.
Attendees at the summit recognized the event as a pivotal moment, marking a significant change in the U.S. government’s stance on cryptocurrency regulation.
Stablecoins as a Tool for U.S. Dollar Hegemony
Overcollateralized stablecoins, backed by U.S. Treasury bills and cash deposits, are being positioned as a means to bolster the dollar’s dominance. These digital assets drive demand for U.S. debt instruments, reinforcing the country’s financial influence globally.
Federal Reserve Governor Christopher Waller has echoed this sentiment, arguing in early 2024 that stablecoins could mitigate the impact of cryptocurrencies on the dollar’s market share. In February 2025, he reiterated that stablecoins could help sustain the dollar’s reserve currency status by circumventing foreign capital controls and enhancing global payment infrastructure.
Legislative Efforts to Regulate Stablecoins
As part of the administration’s push to integrate stablecoins into the financial system, U.S. Representatives French Hill and Bryan Steil introduced the Stable Act of 2025. This proposed legislation aims to establish a clear regulatory framework for dollar-pegged digital fiat tokens, providing legal certainty and fostering innovation in the sector.
