U.S. Treasury Secretary Scott Bessent said on Oct. 27 that the United States will prevail in digital assets, and that success will help strengthen the dollar’s position. He made the remarks during a conversation with Ripple CEO Brad Garlinghouse at Ripple’s Swell conference, according to CoinDesk.
Bessent says reserve-currency power is shifting toward technology
Bessent said reserve currencies have historically been backed by military strength, but that the balance is moving toward technological leadership.
“We will keep the military umbrella, but I think it is increasingly becoming a technology umbrella,” he said.
He pointed to the split between the U.S. and Chinese technology ecosystems, saying countries and companies are being forced to choose which AI systems and semiconductor technologies to adopt. Bessent said digital assets belong in that same contest, and that the financial infrastructure countries choose will shape the reach of the dollar.
“I think digital assets will be no exception. We will win at the digital asset layer, and that will continue to strengthen the dollar,” he said.
More than 90% of stablecoins are backed by dollars, he says
Bessent said more than 90% of stablecoins are supported by the U.S. dollar, with issuers typically holding U.S. Treasuries as reserve assets. As stablecoin adoption rises, demand for those assets could increase as well, creating another financing channel for the federal government.
“I think it will become an important source of funding for the Treasury,” he said.
Bessent rejected the idea that stablecoins simply replace dollars people already hold. Instead, he said they can reach new users in emerging markets who want to protect savings and avoid depreciation in their local currencies.
“I think we are opening new markets around the world,” he said.
The report said the Trump administration had previously pushed through the GENIUS Act, establishing a federal-level regulatory framework for stablecoins.
Treasury plans to work with the SEC and CFTC after the CLARITY Act failed
Bessent said it was disappointing that Congress failed in September to pass the CLARITY Act, a bill meant to create a federal framework for the crypto industry. Even so, he said the Treasury Department can still work with the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission to advance oversight through agency action.
“At Treasury, we have a lot of convening power,” he said.
Bessent described the SEC and CFTC as “great partners” and said the regulatory framework they build could serve as a model for other countries. CoinDesk noted that rules written by regulators can give the industry more clarity, though they do not carry the same long-term force as legislation.
He also addressed industry concerns over debanking
On debanking, or the cutting off of financial services to crypto firms, Bessent said the CLARITY Act would have helped prevent that practice from returning, but added that regulatory protections could still offer safeguards.
“I think we can put in place regulatory best practices and guardrails to keep this from happening again,” he said.
