United States Treasury Secretary Scott Bessent mentioned the US authorities will use stablecoins to make sure that the US greenback stays the world’s world reserve forex through the White Home Crypto Summit on March 7.
Bessent reiterated the Trump administration’s promise to end the war on crypto and dedicated to rolling again earlier IRS steering and punitive regulatory measures. Bessent then turned his consideration to stablecoins and mentioned:
“We’re going to put numerous thought into the stablecoin regime, and as President Trump has directed, we’re going to hold the US [dollar] the dominant reserve forex on this planet, and we are going to use stablecoins to try this.”
President Trump advised the summit that he hopes lawmakers will get a complete stablecoin regulatory invoice to his desk earlier than the August Congressional recess.
President Trump delivers tackle to White Home Crypto Summit. Supply: The Associated Press
The President was additionally important of the Biden administration for promoting parts of the seized Bitcoin (BTC), which he mentioned amounted to billions in losses by untimely promoting.
Most of the attendees of the primary White Home Crypto Summit remarked on the historic nature of the occasion, which cements a seismic shift within the US authorities’s stance towards the digital asset business.
Attendees of the White Home Crypto Summit. Supply: The Associated Press
Associated: Trump’s crypto summit ‘not going to have anything on taxes’ — White House official
Stablecoins as a method to prolong US greenback hegemony
Overcollateralized stablecoins, which use short-term US Treasury payments and money deposits to again their digital fiat tokens and thus drive demand for US debt devices, have been pitched as a method to extend US dollar dominance.
Federal Reserve Governor Christopher Waller additionally voiced help for using stablecoins to prop up the dollar in February 2024.
Waller argued that the corrosive impact of cryptocurrencies available on the market share of the US greenback can be mitigated by stablecoin demand.
Treasury Secretary Scott Bessent says stablecoins will guarantee US greenback hegemony on the White Home Crypto Summit. Supply: The Associated Press
In February 2025, Waller reiterated his stance that stablecoins might assist protect the greenback’s standing as the worldwide reserve forex by overcoming capital controls in overseas international locations and enhancing payment rails.
As a part of this effort to leverage stablecoins to defend the US greenback, US representatives French Hill and Bryan Steil introduced a stablecoin bill titled the Secure Act of 2025 to ascertain a complete regulatory framework for dollar-pegged digital fiat tokens.
Journal: Unstablecoins: Depegging, bank runs and other risks loom
