Treasury Secretary Scott Bessent pushes Treasury-backed stablecoin rules through congress

Dollar-pegged stablecoins could explode to a $2 trillion market cap within a few years, Treasury Secretary Scott Bessent said on Wednesday while testifying at a Senate Appropriations subcommittee hearing.

Scott told lawmakers the US government is moving to cement the dollar’s reserve currency status by backing legislation that would push stablecoins deeper into the financial system, with strict rules ensuring they are fully supported by Treasury bills and other short-term government debt.

Scott said concerns about the dollar’s future have popped up over and over again in history. Each time, he added, the dollar has come back stronger — now, he thinks crypto is part of the next phase.

“This administration is committed to keeping the reserve currency status and enhancing that,” Scott said during questioning. He also pointed out that ongoing legislation in Congress would create clear rules for dollar-linked stablecoins, which would have to be backed 1-to-1 by high-quality assets like T-bills.

Scott pushes Treasury-backed stablecoin rules through congress

Scott said the $2 trillion number is not just wishful thinking. “I think that $2 trillion is a very, very reasonable number, and I could see it greatly exceeding that,” he told the committee. His position is that stablecoins backed by US debt will expand the dollar’s reach around the world, as more people start using them for daily transactions. He also argued that dollar-pegged coins will boost demand for US government debt globally — something that aligns with broader fiscal goals.

Meanwhile, Congress is pushing hard to pass new stablecoin legislation. The Senate cleared a major procedural vote on Wednesday, 68-30, and is expected to pass the final bill as early as next week. The measure has backing from President Donald Trump, major crypto lobbying groups, and a handful of powerful lawmakers on both sides.

One day before the Senate vote, the House Financial Services and Agriculture committees passed a broader crypto bill, after Republicans blocked changes that would’ve stopped Trump from profiting off his crypto holdings.

Crypto giants, led by the Fairshake PAC and its affiliated entities, spent massive amounts of money during the last election to support pro-crypto candidates and policies. Now, those groups are backing the bill to make sure stablecoins can be used more widely in payments.

Retailers are also throwing their weight behind it, hoping that the coins will give them an alternative to Visa and Mastercard, whose credit card processing fees have long been a problem for large merchants.

Retailers and banks clash over bill as vote nears

Retailers aren’t just supporting the stablecoin bill — they’re also lobbying hard to attach a separate provision that would force large banks to offer more credit card processing network options beyond Visa and Mastercard. But Senate leaders are expected to block that effort, along with a separate push from Democrats to ban Trump from making money from crypto projects while in office.

As for the banks, they’re divided. Smaller ones have been warning that stablecoins will pull deposits out of the traditional banking system, shrinking access to loans and everyday credit. Bigger banks, on the other hand, are exploring ways to create their own stablecoins that would let them keep control of customer funds — and earn interest on the reserves those coins are backed by.

Scott didn’t speak on those fights. He stayed focused on the dollar and the role of crypto in reinforcing it. He emphasized that as long as these stablecoins are fully backed by US government debt, the result would be stronger demand for dollars at home and abroad.

He also mentioned that while Citigroup analysts have predicted a more conservative estimate of $1 trillion in new Treasury purchases from stablecoins by 2030, the Treasury Department sees much bigger potential. “This is not just a possibility, it’s something we’re actively working to make real,” he said.

The bill is a top priority for Scott and for the White House. Senate Banking Chair Tim Scott confirmed that he’ll hold a hearing on the broader crypto regulation bill in July, though it likely won’t pass until fall. Senate Majority Leader John Thune said on Wednesday that the Senate will aim to pass the stablecoin bill in the next few days and urged the House to act quickly to get it on Trump’s desk.

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