- The U.S. stablecoin market accounts for 96% of the global $247 billion market.
- The GENIUS bill cleared a key hurdle this week after surviving a cloture vote in the U.S. Senate.
- Bessent told senators that stablecoins represent a “new mechanism” to strengthen the dollar’s global position.
U.S. Treasury Secretary Scott Bessent said the American stablecoin market is undergoing regulatory reform and could grow to more than $2 trillion by 2028.
He made the comments Wednesday at a Senate hearing as lawmakers advanced the bipartisan GENIUS bill, which would impose strict guardrails for stablecoin issuers.
Bessent argued that regulation tying stablecoins to U.S. Treasury securities could significantly boost the global use of dollar-backed tokens and help preserve U.S. monetary leadership in an increasingly fragmented financial landscape.
GENIUS bill gains momentum in the Senate
After surviving a final cloture vote in the Senate, the GENIUS bill cleared a major procedural hurdle this week, signaling broad political support for creating a federal framework to supervise stablecoins.
The legislation is viewed as a crucial step to integrate stablecoins into the existing financial system, requiring full backing by the dollar or similarly liquid assets.
It would also mandate annual audits for issuers with market capitalizations exceeding $5 billion.
The bill includes specific provisions to regulate activity by foreign-issued stablecoins within U.S. borders, underscoring concerns about monetary sovereignty and potential systemic risks.
Meanwhile, the U.S. stablecoin market—valued at roughly $247 billion—represents more than 96% of the global total.
Reports indicate President Donald Trump has signaled support for the bill and is pushing to sign it into law before Congress adjourns for the summer recess.
This effort aligns with broader government goals to ensure the dollar remains the dominant reserve currency, particularly amid heightened geopolitical competition and the emergence of alternative tokenized currencies.
Treasury projects long-term effects on dollar usage
Bessent told senators stablecoins represent a “new mechanism” to bolster the dollar’s global standing, especially in cross-border payments and decentralized finance (DeFi).
He described the $2 trillion estimate as “very reasonable,” especially if regulation spurs wider institutional adoption and trust.
Economists have long warned that dollar dominance could face challenges from alternatives such as China-backed central bank digital currencies (CBDCs) and other tokenized options.
Yet Bessent noted that historically the dollar has maintained its reserve status by adapting to new financial architectures—an evolution he expects will continue through the integration of regulated stablecoins.
“Stablecoins backed by U.S. Treasury securities will become the next pillar of dollar strength,” he said, urging lawmakers to act quickly so the United States can lead the development of this emerging market.