While important developments continue to occur regarding Bitcoin (BTC) and the cryptocurrency market in the USA, important statements came from US Treasury Secretary Scott Bessent.
US Treasury Secretary Scott Bessent touched on stablecoins, which have been a subject of debate in recent months, in his statement to the Senate subcommittee.
Bessent said dollar-backed stablecoins could reach a market value of $2 trillion or more.
Emphasizing that stablecoins have the potential to expand the global use of the US dollar, Bessent noted that Congress is advancing legislation requiring stablecoins to be backed by high-quality assets such as US Treasury Bonds.
Bessent stated that there have been many incidents throughout history where the status of the dollar has been questioned, but such fears have been proven unfounded as new dynamics have given the US dollar new momentum.
“This administration is committed to preserving Bitcoin’s reserve currency status in America and advancing blockchain technology. Stablecoin legislation backed by U.S. Treasury Bonds or Treasury Notes would create a market through these stablecoins that would expand the use of the U.S. dollar around the world. “I think 2 trillion is a very, very reasonable number for the stablecoin market, and I can see it being much higher.”
The US Treasury Secretary recently reiterated that the US government is seeking to solidify the dollar’s reserve currency status by supporting legislation that would further embed stablecoins into the financial system and include strict rules that would ensure they are fully backed by Treasury bonds and other short-term government debt.
Meanwhile, great efforts are being made to pass the GENIUS bill, which is seen as cryptocurrency-friendly, in Congress.
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*This is not investment advice.
