Trump Admin Declares War on Crypto Crackdowns: Stablecoins to Reinforce Strength of Dollar
US Treasury Secretary Scott Bessent stated at the White House Crypto Summit on March 7 that the US government will use stablecoins to guarantee that the US dollar continues to be the world’s reserve currency. Reiterating the Trump administration’s pledge to put an end to the assault on cryptocurrency, Bessent pledged to rescind earlier IRS guidelines and harsh regulatory actions. Then, Bessent focused on stablecoins himself.
We are going to put a lot of thought into the stablecoin regime, and as President Trump has directed, we are going to keep the US dollar the dominant reserve currency in the world, and we will use stablecoins to do that.
Bessent
White House Crypto Summit Marks Shift in US Digital Asset Policy
Prior to the August Congressional recess, President Trump expressed his expectation to the summit that lawmakers would send him a complete stablecoin regulatory bill. Additionally, the President criticized the Biden administration for selling off some of the confiscated Bitcoin, claiming that this premature sale resulted in losses of billions of dollars. The first White House Crypto Summit was a landmark event that solidified a radical change in the US government’s attitude toward the digital asset sector, as many delegates noted.
Overcollateralized stablecoins have been promoted as a means of maintaining US dollar dominance since they back their digital fiat tokens with short-term US Treasury bills and cash deposits, which increases demand for US debt instruments. In February 2024, Governor Christopher Waller of the Federal Reserve also expressed support for the use of stablecoins to sustain the dollar.
Waller contended that stablecoin demand will counteract the damaging impact of cryptocurrencies on the US dollar’s market share. Waller reaffirmed in February 2025 that stablecoins might assist maintain the dollar’s position as the world’s reserve currency by improving payment rails and circumventing capital controls in other nations.
For more up-to-date crypto news, you can follow Crypto Data Space.
Leave a comment