U.S. Treasury Secretary Scott Bessent has expressed support for utilizing stablecoins to bolster the dollar's position in the global market. His comments and the new legislation may significantly change the regulation of cryptocurrencies in the country.
Support for Stablecoins
Scott Bessent noted that stablecoins can play an important role in strengthening the dollar's global position. He criticized past administrations for ignoring cryptocurrencies, marking the current policy as a step toward a more open approach to digital assets.
GENIUS Act
The GENIUS Act proposes requiring stablecoins to be 1:1 backed by U.S. dollars, affecting major assets such as USDT and USDC. This change could have significant impacts on the crypto market and attract investments.
Economic Impact
The enactment of the GENIUS Act could lead to increased interest in stablecoins and digital finance overall, which in turn will impact financial markets and promote technological innovation in the country. Bessent emphasizes that cryptocurrencies do not pose a threat to the dollar; instead, they can help reinforce its position.
The support for stablecoins and the GENIUS Act highlight a shift in the U.S. approach to cryptocurrency regulation and open new opportunities for economic growth amidst global changes.
