Trump Administration to Remove Regulatory Impediments to Bitcoin and Stablecoins
US Treasury Secretary Scott Bessent has reaffirmed the Trump administration’s commitment to promoting the development of Bitcoin and blockchain technology in the United States. Speaking at the American Bankers Association in April, Bessent emphasized the administration’s dedication to fostering innovation by reforming the banking system through the integration of blockchain technology and new payment systems.
Regulatory Clarity to Foster Innovation
To achieve this goal, Bessent stated that the administration would identify and eliminate obstacles hindering the adoption of blockchain technology. Since taking over as Treasury Secretary in January, Bessent has shown a strong commitment to this task. He played a crucial role in the creation of the US Bitcoin reserve and is working with White House Digital Assets Executive Director Bo Hines to explore budget-neutral ways to purchase Bitcoin.
The Trump administration has been successful in persuading Congress to approve pro-crypto regulations. The GENIUS stablecoin act recently passed with a favorable 68-30 voting outcome, and the crypto market structure bill gained bipartisan support in the US House Agriculture Committee and the US House Financial Services Committee. These regulations aim to provide much-needed clarity for digital assets in the United States.
Bessent believes that a clear crypto framework would facilitate the integration of blockchain technology into the banking system. He also suggested that stablecoins could create new payment rails for the traditional financial system, potentially “unleashing the awesome power of the American capital market.”
USD-Pegged Stablecoin Market to Hit $2 Trillion by 2028
In a speech at the Senate Appropriations Committee hearing, Bessent highlighted the importance of the stablecoin market to the US dollar’s global dominance. He emphasized that clear regulations, such as the GENIUS Act, would encourage the mainstream adoption of US dollar-pegged stablecoins, significantly boosting their global and local reach. Bessent projected that the USD-based stablecoin sector could grow to $2 trillion in three years, representing an over sevenfold increase from its current market cap of $246.6 billion.
Bessent’s projection is supported by other industry experts, such as AI and crypto czar David Sacks, who has also predicted that the US dollar stablecoin market would attract trillions in liquidity to US Treasury bills.
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