U.S. Treasury Secretary Scott Bessent: GENIUS Act Could Unlock $3.7 Trillion Stablecoin Market, Boost Dollar Dominance, and Tackle National Debt

Washington, D.C., June 18, 2025 — In a significant development that could reshape the future of digital finance, U.S. Treasury Secretary Scott Bessent has thrown his support behind the GENIUS Act, describing it as a historic opportunity to unlock a $3.7 trillion stablecoin market, strengthen the position of the U.S. dollar globally, and provide innovative pathways to address the national debt.

Speaking at a financial technology summit in Washington, Bessent painted a compelling vision of how the legislation — set for a key Senate vote later this month — could position the United States as the world’s leader in regulated digital currencies.

“The GENIUS Act is not just about stablecoins. It’s about modernizing the dollar for the 21st century, ensuring we maintain financial leadership, and creating tools to responsibly reduce our debt,” Bessent said.

The GENIUS Act: A Landmark Bill for Stablecoin Regulation

The Guidelines for the Establishment of a National Infrastructure for U.S. Stablecoins (GENIUS) Act aims to set comprehensive regulatory standards for stablecoins — digital tokens typically pegged to fiat currencies like the U.S. dollar.

The bill outlines:

• A licensing framework for stablecoin issuers, requiring robust capital reserves, transparent audits, and clear consumer protections.

• Mandatory use of regulated custodians to safeguard funds backing stablecoins.

• Enhanced reporting obligations to prevent illicit finance and ensure compliance with anti-money laundering laws.

If passed, the GENIUS Act would be the first federal law in the U.S. specifically designed to govern stablecoin issuance and circulation.

$3.7 Trillion Market Potential: A New Frontier for Digital Finance

Secretary Bessent’s remarks highlight the enormous economic potential of a regulated stablecoin sector. Citing recent Treasury estimates, Bessent noted that the global market for U.S. dollar-backed stablecoins could grow to $3.7 trillion within five years under the GENIUS framework.

“The dollar is already the currency of choice for international trade. Imagine if we can extend that dominance into digital markets, where trillions of dollars of transactions will take place in the coming decade,” Bessent said.

Currently, stablecoins such as USDT (Tether) and USDC (Circle) account for over $150 billion in market capitalization. However, most of these operate under a patchwork of state regulations or exist offshore — a situation that the GENIUS Act seeks to rectify.

A Tool to Address National Debt?

One of the more striking claims from Bessent’s speech was the potential for stablecoin adoption to contribute to national debt reduction. According to the Secretary, widespread global use of digitized U.S. dollars in stablecoin form could generate new streams of seigniorage — the profit made by issuing currency — which could be directed toward public debt obligations.

“By ensuring that the world’s digital transactions are powered by compliant, dollar-denominated stablecoins, we create financial efficiencies and revenue models that support fiscal stability at home,” Bessent explained.

While critics argue that the connection between stablecoin adoption and debt reduction is complex, supporters say the GENIUS Act could pave the way for creative, technology-driven solutions to the U.S.’s mounting debt burden.

Enhancing Dollar Dominance in a Digital World

Bessent’s speech comes amid growing concern that the dollar’s supremacy could be challenged by the rise of digital currencies from geopolitical rivals, including China’s digital yuan.

“The world is moving to programmable money,” Bessent warned. “If we do not lead, others will fill the vacuum. The GENIUS Act ensures that the dollar remains at the heart of the global financial system — in both its traditional and digital forms.”

Experts agree that providing regulatory clarity could help U.S.-issued stablecoins become the default choice for global digital transactions, reinforcing the dollar’s role as the world’s reserve currency.

Industry Reactions: Enthusiasm Mixed with Caution

Initial industry reactions to Bessent’s remarks and the GENIUS Act have been largely positive. Major stablecoin issuers like Circle and Paxos have voiced support, emphasizing the need for clear federal guidelines to legitimize their operations and encourage mainstream adoption.

However, some crypto advocates and privacy groups have expressed concerns about potential overreach. “We support regulation, but not at the expense of innovation and financial privacy,” said a spokesperson for a leading blockchain advocacy group.

Meanwhile, banking and fintech analysts say that while the GENIUS Act represents progress, much will depend on how the regulatory framework is implemented in practice. There are questions about how quickly licenses can be issued, what level of compliance costs firms will face, and how international markets will respond.

The Road Ahead: Key Senate Vote Looms

The GENIUS Act is slated for a critical Senate vote next week. The bill enjoys bipartisan support, with lawmakers framing it as essential for both national security and economic competitiveness.

If passed, the law would direct the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the Securities and Exchange Commission (SEC) to jointly oversee stablecoin activity. A phased rollout of licensing and oversight mechanisms is expected, with pilot programs possibly launching as early as 2026.

🚨 BREAKING: 🇺🇸 Treasury Sec. Scott Bessent says GENIUS Act could unlock a $3.7T stablecoin market, cut national debt, and supercharge dollar dominance globally.#America 💲 #PiNetwork pic.twitter.com/mkQviISfjS

— Shah rah π (@shrh56108161) June 18, 2025

For investors and crypto enthusiasts, the vote represents a key inflection point in the evolution of digital finance policy in the United States.

Final Thoughts: A Turning Point for the U.S. in Digital Currency Leadership?

Treasury Secretary Scott Bessent’s strong endorsement of the GENIUS Act underscores just how high the stakes have become in the global race for digital currency leadership.

If the U.S. can successfully balance innovation with regulation, experts believe it could set the standard for how nations integrate blockchain-based finance into existing economic systems. For now, all eyes remain on Capitol Hill as lawmakers prepare for what could be one of the most consequential votes for crypto policy in American history.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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