- Treasury Secretary Bessent reveals stablecoin legislation expected to be finalized by mid-July.
- GENIUS Act proposes backing stablecoins with U.S. Treasuries, boosting market confidence.
- Bessent disclosed Trump’s plan to find Powell’s successor in the coming weeks or months.
In an interview with Bloomberg, U.S. Treasury Secretary Scott Bessent stated that legislation regarding stablecoins is expected by mid-July, which falls under the GENIUS Act. The bill intends to secure stablecoins with U.S. Treasury securities and shift demand toward government securities. This action might significantly affect the financial market, particularly the cryptocurrency world.
The GENIUS Act aims to place stablecoin reserves under the jurisdiction of the U.S. Treasury. Bessent believes this might have the effect of reducing federal borrowing rates and establishing structural backing for the U.S. economy. It would stabilize the market since the stablecoins would have to be backed 1:1 with government-backed assets, thus increasing the reliability of stablecoins to investors.
Stablecoin Market Growth Driven
Circle and Tether are major market participants in the stablecoin market. The proposed bill would require them to hold an equal value of U.S. Treasuries to match the value of their stablecoins in circulation. This move could stabilize the financial market and could be a key driver in pushing the stablecoin market cap to $3.7 trillion by 2030.
The USDC is one of the most successful stablecoins, which demonstrates the growing role of stablecoins in the financial sector with a market cap of $61.50 billion. It has also experienced a 113.93% increase in its trading volume over the last 24 hours. This explosion suggests the rise of stablecoins and the stability of this digital asset.
The act has already garnered significant political support. The Bill, the GENIUS Act, was unanimously approved by the Senate in a bipartisan vote of 68-30 on June 17, 2025. The regulation of stablecoins has received broad support due to its potential benefits. This could increase the demand for government bonds, as stablecoins gain monetary dominance in the market.
Bessent Discusses Potential Successor Role to Powell
Meanwhile, Jerome Powell’s term as Federal Reserve Chair will come to an end in May 2026. Bessent has been listed as one of the possible successors to Powell and Trump on the other hand is seeking a replacement for Powell. The administration will work on appointing a successor for the new Fed Chair over the coming weeks and months.
Related: Trump’s Rate Cut Battle with Powell: Will His Fed Chair Pick Shift Policies?
“I will do what the President wants, but I think I have the best job in DC,” said Bessent. He indicated that the ultimate decision rests with President Trump and that he will accept the position should it be offered to him.
Bessent has also urged that there is a need to lower interest rates. His view is that the declining inflation rates and low tariffs suggest a reduction in rates. Trump has also been requesting that the Federal Reserve cut interest rates by 1%. Trump has claimed that the rate policy will cost the US economy billions of dollars.
The Trump administration is planning to name Powell’s successor before October. The most possible candidates to take the position include Bessent, Kevin Hasset, Christopher Waller, and Kevin Warsh. Bessent, nevertheless, is not losing track of his Treasury duties as he continues to negotiate the stablecoin bill towards its final ending.
The GENIUS Act has the potential to provide a revolutionary transformation to all stablecoins and government securities. If the bill becomes law, it is to be expected that it would lower the cost of federal borrowing, and this will significantly impact financial markets.
