US Treasury Secretary Scott Bessent said on October 27, 2026, at Ripple's Swell conference that cryptocurrencies and dollar-backed stablecoins could strengthen the US dollar's global dominance. Speaking alongside Ripple CEO Brad Garlinghouse, Bessent argued that technological leadership is becoming as important as military power in determining reserve currency influence.
Bessent grouped digital assets with artificial intelligence and semiconductors as strategically important technologies in US-China competition. He stressed that the United States aims to lead in digital assets, saying, We will win in the cryptocurrency space, and this will further strengthen the US dollar.
He identified dollar-backed stablecoins as a key mechanism. More than 90% of stablecoins are denominated in US dollars, and issuers typically hold reserves in cash, short-term Treasury securities, and liquid assets. Bessent suggested growing stablecoin adoption could expand access to dollar-based financial services and generate additional demand for US government debt.
His remarks reflect support for the GENIUS Act, enacted in July 2025, which created a federal regulatory framework for payment stablecoins covering reserve backing, redemption obligations, and supervision. Research from the Federal Reserve Bank of Richmond in March 2026 similarly found reserve-backed stablecoins could boost Treasury demand, though effects depend on reserve composition and adoption.
Bessent also commented on the failure of the Digital Asset Market Clarity Act, calling the setback disappointing. He said the Treasury could coordinate with the SEC and CFTC to clarify regulatory expectations, while also addressing debanking concerns affecting crypto firms.
