- Bessent said stablecoins backed by U.S. Treasuries could grow past $2 trillion.
- Senate advances GENIUS Act, requiring full backing and audits for major stablecoin issuers.
- Stablecoins tied to the US dollar account for over 96% of the entire global market.
U.S. Treasury Secretary Scott Bessent said during a Senate hearing Wednesday that the market for U.S. dollar-backed stablecoins could grow past $2 trillion within three years. His comments followed a projection from the Senate Appropriations Committee, which estimated the GENIUS Act would help expand the stablecoin market to that level by 2028.
“I believe that stablecoin legislation backed by U.S. treasuries or T-bills will create a market that will expand U.S. dollar usage via these stablecoins all around the world,” Bessent said. “I think that $2 trillion is a very reasonable number, and I could see it greatly exceeding that.”
Bessent, who has experience in hedge fund strategy and foreign currency, said stablecoins could become a new way to strengthen the U.S. dollar’s position as a global reserve.
GENIUS Act Advances in Senate with White House Support
On the same day, the Senate voted to advance the GENIUS Act, a stablecoin bill mandating full backing by U.S. dollars or other liquid assets. The legislation also requires stablecoin issuers with a market value exceeding $50 billion to undergo annual audits. Furthermore, it sets clear regulatory guidelines for stablecoins issued outside the United States. President Donald Trump has publicly supported the GENIUS Act and plans to sign it into law before August 2025.
Numerous developments have already occurred as a result of the bill’s progress. For instance, USDC issuer Circle recently went public, recording a 235% increase in its stock price on its first day of trading. Additionally, major financial institutions, such as Bank of America, are preparing to release their own stablecoins.
Related: Scott Bessent Confirmed as Treasury Secretary, Ripple CEO Shows Support
Stablecoins Seen as New Tool to Reinforce Dollar’s Global Role
Bessent said the dollar has faced challenges throughout its history as a reserve currency, but key moments have always reaffirmed its dominance. “There have been several occasions throughout the US dollar’s existence as a reserve currency when its legitimacy has been called into doubt. However, fresh circumstances always served to reinforce its power,” he said.
He believes the next such moment may come through the widespread global use of U.S.-backed stablecoins. These tokens, when backed by high-quality assets like U.S. Treasury notes, can encourage global adoption while boosting investor confidence.
Currently, stablecoins tied to the U.S. dollar hold a combined market value of $246.9 billion, accounting for over 96% of the entire stablecoin market. As the GENIUS Act moves forward, stablecoins are gaining attention in countries where local currencies remain unstable.
