WASHINGTON, D.C. — U.S. Treasury Secretary Scott Bessent endorsed the GENIUS Act on Tuesday, August 19, 2025, calling it “essential” for cementing American leadership in digital assets and expanding global access to the U.S. dollar. In a post on X, Bessent emphasized the role of stablecoins, digital currencies pegged to the dollar, in driving demand for U.S. Treasuries, according to Benzinga. The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, signed into law by President Donald Trump in July, aims to regulate the $289 billion stablecoin market.
“It’s a win-win-win for everyone involved: stablecoin users, stablecoin issuers, and the U.S. Treasury Department,” Bessent stated, highlighting the act’s potential to enhance dollar dominance, per Benzinga. The Treasury’s Request for Comment, issued under the act, seeks public input on detecting illicit activities in digital assets, focusing on AI, blockchain, and digital identity verification. Bessent previously forecasted that stablecoins could unlock $2 trillion in demand for U.S. Treasuries, with Tether, the largest stablecoin issuer, holding $127 billion in U.S. debt in Q2 2025.
Key aspects of the GENIUS Act include:
- Regulatory Framework: Establishes rules for stablecoin issuers like Tether and USD Coin.
- Dollar Expansion: Enables billions globally to access dollar-based transactions.
- Treasury Demand: Boosts U.S. debt holdings, potentially lowering borrowing costs.
The act has sparked debate, with critics like Sen. Elizabeth Warren raising concerns about Trump’s financial ties to the crypto sector, citing potential conflicts of interest. Posts on X, including from @CryptoEconomyEN, praised Bessent’s vision for dollar dominance, though some expressed skepticism about regulatory clarity. As the U.S. competes with China’s digital yuan, the GENIUS Act positions stablecoins as a tool to maintain the dollar’s global reserve status.
