U.S. Treasury Secretary Scott Bessent stated that virtual currencies could assist in cementing the greenback’s worldwide supremacy as technology continuously turns into a major driver of American economic authority.
Addressing the audience on Tuesday alongside Ripple CEO Brad Garlinghouse at Ripple’s Swell conference, Bessent suggested that while global reserve currency dominance historically stemmed from military might, it is rapidly transitioning toward technological supremacy.
“We will keep our military umbrella, but I think more and more it’s becoming a technology umbrella,” remarked Bessent.
He drew attention to the growing divergence between American and Chinese technology sectors, where nations and enterprises must choose which artificial intelligence frameworks and semiconductor innovations to embrace. Bessent indicated that he regards digital assets as part of that rivalry, noting that the financial frameworks countries select will shape the global footprint of the U.S. dollar.
“I think that digital assets are going to be no different, and we are going to win in the digital asset stack, and that’s gonna continue to fortify the [U.S.] dollar,” he mentioned.
His comments provided a broader justification for President Donald Trump’s administration’s efforts to attract cryptocurrency firms to domestic shores, portraying digital assets not merely as a financial market, but as components of the infrastructure capable of maintaining American financial power. The administration has successfully enacted the GENIUS Act, which set up a federal regulatory structure for stablecoins—digital tokens engineered to preserve a steady valuation pegged to fiat money like the U.S. dollar.
Bessent argued that stablecoins could strengthen the dollar’s standing by widening access to U.S. currency in regions where domestic tender suffers from inflation or severe exchange rate volatility.
Over 90% of stablecoins rely on U.S. dollar backing, he noted, and their creators frequently maintain U.S. sovereign debt as reserves. As utilization increases, the requirement for those financial instruments could climb, generating an alternate funding mechanism for the federal government.
“I think it’s gonna be an important source of funding for the Treasury,” Bessent expressed.
‘Opening new markets’
Bessent dismissed the notion that stablecoins would simply substitute existing dollar holdings, contending that they could engage fresh participants in developing economies eager to shield their savings from currency devaluation.
“I think we are opening up new markets all around the world,” he stated.
Nevertheless, the White House’s broader campaign to supervise crypto markets faced a setback after Congress failed to pass the Clarity Act, which was intended to introduce a federal framework for the sector.
Bessent labeled the legislative failure a disappointment but noted that the Treasury Department could collaborate with watchdogs such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to drive oversight via agency initiatives.
“At Treasury, we have a lot of convening powers,” he explained, characterizing the SEC and CFTC as “great partners” in building a supervisory blueprint that could act as a template for other nations.
The administrative initiatives from these agencies might deliver heightened transparency for crypto entities, although regulations established by watchdogs will lack the durability of statutory laws.
Bessent also tackled industry anxieties regarding debanking, a practice where financial institutions terminate banking services for crypto enterprises, occasionally purported to be driven by regulatory coercion.
He noted that the Clarity Act would have assisted in stopping a resurgence of such behavior, yet maintained that administrative safety measures can still supply adequate defense.
“I think we can set up regulatory best practices, guardrails that will prevent that from happening again,” Bessent concluded.
Originally published at https://www.coindesk.com/policy/2026/10/27/treasury-s-bessent-sees-crypto-as-america-s-next-tool-for-keeping-the-u-s-dollar-on-top.
