Scott Bessent Says Genius Act 'Essential' To Secure US 'Leadership' In Digital Assets, Says It Will Boost Dollar Access For Billions

Treasury Secretary Scott Bessent backed the implementation of the GENIUS Act on Monday, also known as the stablecoin bill, citing its potential to secure “American leadership” in digital assets.

Bessent Says Stablecoins Would Expand Dollar Access

In an X post, Bessent highlighted the role of stablecoins in expanding dollar access globally and boosting demand for U.S. Treasuries.

“It's a win-win-win for everyone involved: stablecoin users, stablecoin issuers, and the U.S. Treasury Department,” Bessent stated.

His post came in response to the Treasury’s Request for Comment required by the GENIUS Act, seeking feedback on how regulated financial institutions can detect illicit activity involving digital assets.

“As required by the GENIUS Act, Treasury will use public comments to inform research on the effectiveness, costs, privacy and cybersecurity risks, and other considerations related,” a statement from the press release read.

Growing Exposure To US Debt

Bessent’s views aligned with his previous predictions about the impact of stablecoins on the U.S. economy. In May, he forecasted that stablecoins could potentially unlock $2 trillion in demand for U.S. treasuries.

Stablecoins have rapidly ascended as one of the biggest holders of U.S. treasuries in recent years, with Tether USDT/USD, issuer of the world's largest stablecoin, disclosing $127 billion in exposure to U.S. debt in the second quarter.

The GENIUS Act, passed into law, intends to provide the first regulatory framework for issuers of dollar-pegged stablecoins like Tether and USD Coin USDC/USD, and oversee the nearly $289 billion worth of the unregulated sector.

However, the Act has also sparked controversy due to President Donald Trump’s financial ties to the sector, leading to concerns about potential conflicts of interest, with senior Democrat Sen. Elizabeth Warren (D-Mass.) among the most vocal opponents.