Treasury Secretary Scott Bessent believes the US dollar-backed stablecoin market could exceed $2 trillion by 2028. However, his wager is contingent on lawmakers passing strong regulatory frameworks.
His remarks come amid growing stablecoin adoption in the US, with institutional players looking to enter the market.
Stablecoins Are Key to Preserving US Dollar Dominance, Scott Bessent Says
During a Wednesday Senate hearing, Bessent emphasized the potential for stablecoins to bolster global dollar adoption and maintain US financial leadership.
“Stablecoin legislation backed by US treasuries will create a market that will expand US dollar usage via these stablecoins all round the world… I think that $2 trillion is a very reasonable number and I can see it greatly exceeding that,” Bessent stated.
His remarks came as the US Senate voted to advance the bipartisan GENIUS Act, a long-awaited bill that would establish guardrails for stablecoin issuers.
The legislation mandates that US dollars or similar liquid assets fully back all stablecoins. It also requires annual audits for issuers with over $50 billion in market capitalization.
Further, the GENIUS Act includes provisions to regulate foreign-issued stablecoins operating within US markets.
The GENIUS Act, which passed a cloture vote, is viewed as a crucial step in legitimizing stablecoins as a core component of the modern financial system.
President Donald Trump expressed support for the legislation and reportedly wants it signed into law before Congress adjourns for the summer.
“In the history of the US dollar as a reserve currency, there have been numerous passages along the way where many people assumed that the US dollar would lose reserve currency status and there’s always been a new mechanism that has cemented that,” Bessent noted.
This echoes the Trump administration’s determination to bolster the dollar’s status with USD-backed stablecoins.
Wall Street and Washington Align on Stablecoin Strategy
Meanwhile, stablecoins have become important as digital financial rails, particularly in cross-border trade and decentralized finance (DeFi).
The total market capitalization of dollar-linked stablecoins is around $247 billion, representing over 96% of the global stablecoin market.
The Senate’s progress on regulation comes amid growing developments in the sector. US-based fintech firm Circle, the issuer of USDC, recently went public, with its stock price skyrocketing 235% on its debut trading day.
Meanwhile, traditional financial (TradFi) institutions are entering the fray. BeInCrypto reported that the Bank of America has reportedly begun developing its USD-backed stablecoin. This marks a significant move by legacy banks into blockchain infrastructure.
The general perception is that formal regulation could unleash a new wave of institutional involvement. Such an outcome, they say, would transform stablecoins from crypto-native tools into mainstream financial instruments.
“Stablecoin summer! We expect to see multiple large financial institutions— banks, fintechs and payment platforms-rapidly launch and support stablecoins,” wrote SMQKE, a tech shift researcher.
If passed, the GENIUS Act could help enshrine US dollar dominance in the digital economy. Bessent’s bullish forecast reflects a broader consensus within the Treasury that stablecoins, when properly regulated, represent a powerful tool to extend American monetary influence.
“Stablecoins, backed by US treasuries, will serve as the next pillar of dollar strength. We must lead, not follow, in shaping this market,” Bessent said.
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