Treasury Secretary Scott Bessent has boldly declared that crypto poses no threat to the U.S. dollar’s global dominance, arguing that stablecoins can actually “reinforce dollar supremacy,” as the GENIUS Act moves toward final approval.
The Treasury chief declared that digital assets are “one of the most important phenomena in the world right now” while criticizing how they have been “ignored by national governments for far too long.”
His remarks come as President Trump urgently calls for swift House passage of the GENIUS Act without amendments, demanding lawmakers deliver the comprehensive stablecoin regulation bill to his desk “ASAP” following the Senate’s decisive 68-30 approval vote.
The Treasury Secretary’s embrace of cryptocurrency as a tool for dollar reinforcement rather than replacement directly contrasts with growing European concerns, as Italy’s Economy Minister Giancarlo Giorgetti warns that U.S. stablecoin policies could pose a “more dangerous impact on the euro than the effects of trade tariffs.”
Dollar Supremacy vs. European Monetary Sovereignty
The global monetary implications of America’s pro-crypto stance have created a fascinating geopolitical dynamic that extends far beyond traditional trade concerns. European policymakers recognize that digital assets represent a new front in currency competition.
Pierre Gramegna, managing director of the European Stability Mechanism, warned that the Trump administration’s favorable approach toward dollar-denominated stablecoins could affect the eurozone’s “monetary sovereignty and financial stability” by encouraging the adoption of alternative payment methods that bypass European financial institutions entirely.
Italy’s Giorgetti articulated the most direct challenge to European monetary policy, explaining how U.S. stablecoin policies inadvertently offer European savers a pathway to invest in risk-free dollar-denominated assets without requiring banking relationships with American institutions.
This development threatens to fragment Europe’s payment industry while strengthening the dollar’s role as the preferred store of value for international transactions.
The concern has prompted the European Central Bank to accelerate its digital euro project, though implementation remains years away, with a rollout not anticipated until 2028 or 2029.
While Europe sees it as a threat, the pent-up demand for clarity and the GENIUS Act’s comprehensive framework could trigger a wave of institutional adoption that further entrenches dollar-denominated stablecoins as the backbone of global crypto trading and cross-border payments.
GENIUS Act Near Victory Amid Political Controversy
The GENIUS Act’s path to approval has been marked by intense partisan debate. Senator Elizabeth Warren led Democratic opposition by highlighting potential conflicts of interest related to Trump’s cryptocurrency ventures.
Warren’s concerns center on Trump’s USD1 stablecoin, which reportedly generated $57 million last year through the World Liberty Financial platform. This raises questions about whether the president could profit from legislation he signs into law.
Despite these objections, 18 Democrats joined most Republicans in supporting the Senate version.
Senator Cynthia Lummis has emerged as a key advocate for broader crypto legislation, arguing that while the GENIUS Act represents progress, comprehensive market structure legislation remains necessary to establish the United States as the global “crypto capital.”
Trump’s urgent call for House passage without amendments is a strategic calculation to lock in digital asset policy before potential complications arise from extended congressional negotiations or bundling with more contentious crypto legislation.
The president’s allies view rapid approval as essential to maintaining momentum for his administration’s broader digital asset agenda, which includes establishing strategic Bitcoin reserves and positioning America as the global blockchain development hub.
The GENIUS Act represents Congress’s first major attempt to regulate the rapidly expanding stablecoin market, which has grown from under $10 billion to $239 billion in just five years.
The legislation would establish a federal licensing system requiring stablecoin issuers to maintain full 1:1 backing with U.S. dollars while restricting reserves to redemptions and low-risk investments such as Treasury repos.
Before now, the regulatory uncertainty has contributed to a 14% decline in the U.S. share of global blockchain developers since 2018, falling to just 26% by 2023.
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