U.S. Treasury Secretary Scott Bessent said digital assets could strengthen the dollar's global position as technology becomes a larger source of American influence. He also said the Treasury could work with the SEC and CFTC after Congress failed to pass the Clarity Act.
Treasury Secretary Scott Bessent put digital assets alongside AI and semiconductors in the contest for U.S. economic influence. He spoke Tuesday at Ripple's Swell conference with CEO Brad Garlinghouse.
Bessent says technology now underpins the dollar
Bessent argued that the power behind the world's reserve currencies historically derived from military strength, but that it is increasingly shifting toward technological leadership.
He pointed to a growing divide between U.S. and Chinese technology ecosystems, where countries and companies choose whose AI systems and semiconductor technology to adopt. Bessent sees digital assets as part of that competition. According to Bessent, "we are going to win in the digital asset stack".
Stablecoins as a source of Treasury demand
The administration has already secured passage of the GENIUS Act, which set a federal framework for stablecoins. Bessent said stablecoins could expand access to U.S. currency in countries where local currencies face inflation or sharp swings in value.
He said more than 90% of stablecoins are backed by U.S. dollars, and that issuers often hold U.S. government securities as reserves. As adoption grows, demand for those assets could rise, creating another source of financing for the federal government.
Bessent also pushed back on the idea that stablecoins would merely replace dollars people already hold. He argued they could reach new users in emerging markets who want to protect their savings from currency devaluation.
Regulators step in after the Clarity Act stalls
The broader push suffered a setback after Congress failed to pass the Clarity Act, which would have created a federal framework for the industry. Bessent called the failure a disappointment but said the Treasury could work with the SEC and the CFTC to advance oversight through agency action.
He said the Clarity Act would have helped prevent a return to debanking, the practice of financial institutions cutting off services to crypto businesses. Bessent argued that regulatory safeguards could still offer protection.
Rules adopted by regulators, however, would lack the permanence of legislation.
Source: CoinDesk
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