Bessent calls digital assets a tool for dollar dominance at Swell
DeFi & Yields ·
Treasury Secretary says stablecoin growth, led by dollar-backed tokens, feeds demand for US government debt.
US Treasury Secretary Scott Bessent told attendees at Ripple's Swell conference that the basis of global reserve currency dominance is moving from a "military umbrella" to a "technology umbrella," with American leadership in digital assets framed as central to sustaining the dollar's global role, according to wublockchain.xyz. He pointed to a specific figure: over 90% of stablecoins in circulation are dollar-backed and heavily collateralized by US Treasuries.
That collateralization, Bessent argued, is not incidental. As stablecoin use grows in emerging markets, it translates into direct demand for US government debt, which he described as an important funding source for the Treasury itself. The comments tie the expansion of dollar-pegged stablecoins abroad to a domestic fiscal benefit, positioning crypto infrastructure as a mechanism that reinforces rather than threatens the dollar's position.
Bessent also addressed the legislative gap left by Congress's failure to pass the Clarity Act. Rather than waiting for new legislation, he pledged to use the Treasury's convening power in coordination with the SEC and CFTC to pursue administrative rulemaking, aiming to build regulatory guardrails around digital assets. Part of that effort, he said, is intended to prevent a recurrence of crypto debanking, in which financial institutions have cut off services to crypto-related businesses.
The remarks are corroborated by a separate account of the same appearance, which similarly describes Bessent indicating that crypto can support dollar dominance while signaling that the SEC and CFTC would take regulatory action to fill the void left by the stalled Clarity Act and to address debanking concerns.
What remains unspecified is the timeline and substance of the promised administrative rulemaking, including which specific rules the SEC and CFTC might pursue and how soon guardrails against debanking could take shape. It is also unclear whether Bessent's framing signals any imminent policy announcement beyond the convening effort described at the conference, or whether Congress will revisit the Clarity Act following the Treasury's move to act administratively in its absence.