US Treasury's Bessent Says Crypto Can Strengthen Dollar Dominance, Highlights Stablecoins

US Treasury Secretary Scott Bessent said cryptocurrencies could become a key tool for strengthening the dollar's global dominance.

CoinDesk reported on October 27 that Bessent made the remarks during a conversation with Ripple Chief Executive Officer Brad Garlinghouse at Ripple's Swell conference, where he said digital assets would bolster US technological competitiveness and dollar hegemony.

Bessent said reserve-currency influence had historically been grounded in military power, but technology would play a bigger role going forward. While the US will maintain its military security framework, technological safeguards will become even more important, he said. He added that the US would win the race in digital-asset technology and further strengthen the dollar's status through that edge.

He also said dollar-based stablecoins could expand the use of the dollar, particularly in emerging markets. In countries facing currency depreciation or high inflation, stablecoins could become a new means of accessing dollars.

More than 90% of all stablecoins are dollar-denominated, Bessent said, and issuers hold US Treasuries as reserve assets. As stablecoin use expands, demand for US government debt would also rise, potentially making it a major funding channel for the Treasury Department.

On crypto regulation, Bessent expressed disappointment that the CLARITY Act failed to pass Congress. He said the Treasury Department could still work with the US Securities and Exchange Commission and the Commodity Futures Trading Commission to establish a regulatory framework through administrative measures.

Bessent also addressed so-called debanking, in which crypto companies are denied banking services. He said the CLARITY Act would have helped prevent a recurrence of the practice, but stressed that similar problems could also be avoided through regulatory best practices and safeguards.