Treasury Secretary Bessent foresees a promising future for stablecoins pegged to the US dollar.
During a US Senate hearing held on June 11, Treasury Secretary Scott Bessent confirmed that the market for US dollar-backed stablecoins has the potential to surpass the $2 trillion mark within the next three years.
“I believe that stablecoin legislation backed by U.S. treasuries or T-bills will create a market that will expand U.S. dollar usage via these stablecoins all around the world,” the government official stated.
Bessent reiterated the administration’s commitment to strengthening the dollar’s status through USD-denominated stablecoins.
GENIUS Act gains ground
The legislative process received a boost after the Senate voted to advance the stablecoin bill, moving it closer to a final vote. The GENIUS Act, once approved, will establish strict requirements for the stable digital currency sector.
The bill mandates that stablecoins must be fully backed by US dollars or assets with equivalent liquidity (Treasuries). It also requires annual audits for issuers with a market capitalization exceeding $50 billion and includes specific provisions regarding the issuance of these cryptocurrencies abroad.
Stablecoins and the financial system
The stablecoin sector is drawing increasing interest from banking institutions. Bank of America is preparing to launch its own stablecoin, while Circle — issuer of USDC — went public this month, with shares surging 235% on its first trading day.
Currently, US dollar-pegged stablecoins account for over 96% of the entire stable digital currency market.
