U.S. Treasury Secretary Scott Bessent testified before a Senate Appropriations subcommittee on Wednesday, projecting a potential surge in the U.S. dollar-backed stablecoin market to surpass $2 trillion within the next three years. Bessent’s optimistic outlook coincided with a key procedural vote in the Senate, signaling significant momentum for the bipartisan “Guiding and Establishing National Innovation for U.S. Stablecoins” (GENIUS) Act.
During his testimony, Secretary Bessent endorsed the Senate Appropriations Committee’s estimate that the GENIUS Act could expand the USD stablecoin market to the $2 trillion mark by the end of 2028. “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,” Bessent stated. “I think that $2 trillion is a very reasonable number, and I could see it greatly exceeding that.”
Dollar reserve currency
Bessent emphasized the administration’s commitment to fortifying the dollar’s reserve currency status, viewing the integration of stablecoins, with robust backing by Treasury bills and other short-term government debt, as a crucial next phase. He acknowledged historical concerns about the dollar’s future but asserted its consistent resurgence, suggesting that crypto, particularly regulated stablecoins, is part of this ongoing evolution.
“This administration is committed to keeping the reserve currency status and enhancing that,” Bessent affirmed, highlighting that the ongoing legislative efforts in Congress aim to establish clear rules for dollar-linked stablecoins, mandating their 1-to-1 backing with high-quality assets.
The Secretary dismissed any notion of wishful thinking behind the $2 trillion projection, reiterating, “I think that $2 trillion is a very, very reasonable number, and I could see it greatly exceeding that.” He argued that stablecoins underpinned by U.S. debt would broaden the dollar’s global reach by facilitating their use in daily transactions and concurrently boost demand for U.S. government debt worldwide, aligning with broader fiscal objectives.
GENIUS Act
Meanwhile, the GENIUS Act advanced significantly in the Senate on Wednesday, clearing a major procedural vote of 68-30. The bill, which has the backing of President Donald Trump, prominent crypto lobbying groups, and a bipartisan coalition of lawmakers, is anticipated to proceed to a final vote as early as next week.
A day prior to the Senate vote, the House Financial Services and Agriculture committees passed a broader crypto bill, despite Republican opposition to changes that would have prevented President Trump from profiting from his crypto holdings.
Crypto industry giants, notably through the Fairshake PAC and its affiliated entities, have invested substantial resources in recent elections to support pro-crypto candidates and policies. These groups are now actively advocating for the GENIUS Act to facilitate wider stablecoin adoption in payments.
Retailers are also lending their support, seeing stablecoins as a potential alternative to the processing fees charged by credit card networks like Visa and Mastercard, which have long been a point of contention for large merchants. The GENIUS Act, if enacted, is expected to accelerate institutional adoption of blockchain technology by providing a clearer regulatory framework.
