Bessent Says Crypto Could Reinforce the Dollar’s Global Role

Digital assets could extend the dollar’s global reach as technology grows more central to U.S. influence, Treasury Secretary Scott Bessent said Tuesday, Oct. 27, linking crypto infrastructure to countries’ financial choices.

At Ripple’s Swell conference, where he spoke with CEO Brad Garlinghouse, Bessent said the United States would retain its military protection even as technology leadership grows more important. He cited the widening divide between U.S. and Chinese technology ecosystems, with countries and companies weighing which artificial intelligence systems and semiconductors to adopt.

Bessent included digital assets in that competition, saying the United States could lead in digital asset technology and reinforce the dollar. He argued that countries’ choices about financial infrastructure can affect how widely the dollar is used.

He also connected stablecoins to the market for U.S. government securities. Stablecoins are crypto assets designed to hold a steady value against currencies such as the dollar. Bessent said more than 90% of stablecoins are backed by dollars and issuers often keep government securities in reserve. Wider use could increase demand for those securities and provide another funding source for the federal government.

Bessent rejected the idea that stablecoins merely replace dollars people already hold. He said they can reach new users in emerging markets and help people protect savings when local currencies lose value, opening access to dollars in new markets.

The GENIUS Act established a federal framework for stablecoins, but Congress did not pass the Clarity Act, which would have created broader rules for the crypto industry. Bessent called the setback disappointing and said Treasury could work with the SEC and CFTC to advance regulation through agency action, continuing Treasury’s coordination with the agencies on crypto oversight. He said agency rules could help create a framework for other countries to follow, while cautioning that they lack the durability of legislation.

He also addressed concerns about debanking, in which financial institutions cut off services to crypto companies. Bessent said regulatory safeguards and best practices could help prevent those cutoffs from happening again.