US to Leverage Stablecoins to Maintain Dollar Hegemony, Says Treasury Secretary Scott Bessent

During the White House Crypto Summit on March 7, US Treasury Secretary Scott Bessent announced that the United States government plans to use stablecoins to preserve the US dollar's position as the world’s dominant reserve currency. This bold statement highlights the strategic role stablecoins may play in bolstering the dollar’s global supremacy in the evolving digital economy.

Bessent reaffirmed the Trump administration’s commitment to ending what it termed the "war on crypto." He emphasized that previous regulatory measures, particularly those enacted by the IRS, would be rolled back, marking a shift in the government’s approach to digital assets. He explained, "We are going to put a lot of thought into the stablecoin regime, and as President Trump has directed, we are going to keep the US [dollar] the dominant reserve currency in the world, and we will use stablecoins to do that."

Trump’s Call for Comprehensive Stablecoin Legislation

President Donald Trump, also speaking at the summit, reiterated his goal for lawmakers to pass a comprehensive stablecoin regulatory bill, with hopes to have it on his desk before the August Congressional recess. Trump’s remarks underscored the administration's focus on establishing a clear and robust regulatory framework for stablecoins, an area of increasing importance as digital currencies continue to evolve.

Trump also voiced criticism of the Biden administration, particularly regarding its handling of seized Bitcoin assets. He expressed concerns that the government’s decision to sell portions of Bitcoin prematurely had resulted in significant financial losses, amounting to billions of dollars.

Stablecoins as a Pillar of US Dollar Dominance

One of the central themes discussed at the summit was the use of stablecoins to extend the US dollar’s hegemony. Overcollateralized stablecoins, which are backed by short-term US Treasury bills and cash deposits, have been proposed as a mechanism to drive demand for US debt instruments. These digital tokens, pegged to the US dollar, would not only maintain the dollar's global standing but also help to cement its role in digital finance.

Federal Reserve Governor Christopher Waller has previously expressed support for leveraging stablecoins to protect the dollar from competition posed by other cryptocurrencies. In February 2024, Waller highlighted that stablecoins could help mitigate the threat of cryptocurrencies eroding the US dollar’s market share. By enhancing payment infrastructure and offering a way to bypass capital controls in foreign countries, stablecoins could reinforce the dollar's status as the world’s reserve currency.

Waller reiterated these views in February 2025, emphasizing that stablecoins could strengthen the dollar’s position by creating more efficient cross-border payment systems and increasing demand for US financial products.

The Stable Act of 2025: A Step Toward Regulation

In alignment with these goals, US Representatives French Hill and Bryan Steil introduced the Stable Act of 2025, a bill designed to establish a comprehensive regulatory framework for dollar-pegged digital fiat tokens. The proposed legislation aims to create clarity around the legal status of stablecoins, ensuring that they can be safely integrated into the broader financial system while safeguarding the integrity of the US dollar.

The introduction of such legislation reflects a broader shift within the US government toward embracing digital assets and integrating them into the financial mainstream. With support from both the Trump administration and key figures at the Federal Reserve, stablecoins appear poised to play a critical role in the future of US monetary policy.

Historic Shifts in US Crypto Policy

The White House Crypto Summit itself was hailed as a historic event, signaling a significant shift in the US government’s stance toward digital assets. For years, the US has taken a cautious and sometimes adversarial approach to cryptocurrency, but the growing influence of blockchain technology and the rapid adoption of digital assets have prompted a reassessment.

As the US seeks to solidify its leadership in the global financial system, stablecoins are emerging as a key tool in maintaining the dollar's dominance. The ongoing regulatory discussions and potential legislation will likely shape the future of digital currency markets and determine how stablecoins are integrated into the broader global economy.

In conclusion, as the US government moves forward with its plans to use stablecoins to bolster the dollar's global standing, the crypto industry is set to face a new regulatory landscape. With stablecoins poised to play an essential role in the future of global finance, it remains to be seen how these efforts will unfold and what impact they will have on the digital asset space.