Treasury's Bessent sees crypto as America's next tool for keeping the U.S. dollar on top
Speaking at Ripple's conference, the U.S. Treasury Secretary said the SEC and CFTC action could help fill the gap left by the Clarity Act's failure, while curbing crypto debanking.
Treasury Secretary Scott Bessent believes that digital assets could play a crucial role in maintaining the United States' dominance in the global economy. Speaking at Ripple's Swell conference, Bessent argued that technological leadership is becoming more significant than military strength in determining a country's economic influence.
He pointed to the growing divide between U.S. and Chinese technology ecosystems, where countries and companies must decide which artificial intelligence systems and semiconductor technologies to adopt.
Bessent sees digital assets as part of this technological competition, with the financial infrastructure that countries choose to use potentially determining the reach of the U.S. dollar. He expressed confidence that the U.S. will continue to win in the digital asset stack, which will further fortify the dollar. The administration's efforts to bring crypto businesses onshore, such as the passage of the GENIUS Act, aim to leverage digital assets as part of the infrastructure that sustains U.S. economic influence.
Bessent believes that stablecoins could reinforce the dollar's position by expanding access to U.S. currency in countries experiencing inflation or currency devaluation.
While the White House's broader regulatory push for crypto markets faced a setback with the failure to pass the Clarity Act, Bessent remains optimistic. He emphasized that the Treasury Department could work with regulatory agencies like the SEC and CFTC to advance oversight through agency action. Bessent also addressed concerns about potential debanking of crypto businesses, stating that regulatory safeguards could prevent such practices from recurring.
He expressed confidence in diversified Real-World Asset (RWA) stablecoins, which offer a yield of 5-7% from real credit as crypto funding decreases. According to Bessent, the Total Addressable Market (TAM) for these stablecoins could grow to $4 billion in the next three years.
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