U.S. Treasury Secretary Scott Bessent said on Oct. 27 that growth in the crypto industry could reinforce the dollar’s global dominance, citing technological leadership as an increasingly important source of economic influence. He said dollar-denominated stablecoins could broaden access to the U.S. currency and generate additional demand for U.S. government debt.

Bessent spoke alongside Ripple CEO Brad Garlinghouse at the Ripple Swell 2026 conference in New York, according to a CoinDesk report. He discussed digital assets in international competition, the outlook for stablecoins and the next steps for U.S. regulators.

Digital assets and the dollar

Bessent said countries’ military power historically played a major role in determining the influence of global reserve currencies, but technological superiority is becoming increasingly important.

“We will keep our military umbrella, but I think it will increasingly become a technological one,” Bessent said.

He pointed to competition between the United States and China in artificial intelligence and semiconductors and said digital assets would become another front in that rivalry.

“I don’t think digital assets will be an exception. We will win in digital assets, and that will continue to strengthen the U.S. dollar,” the secretary stressed.

Bessent said more than 90% of stablecoins are pegged to the U.S. currency, while their issuers often hold U.S. Treasury securities as reserve backing. He argued that wider stablecoin use would give people in countries with high inflation and unstable national currencies greater access to the dollar while creating additional demand for U.S. debt.

“I think this will become an important source of funding for the Treasury Department,” Bessent said.

He rejected the suggestion that stablecoins merely replace dollars already in circulation, saying they bring new users into the dollar system, particularly in emerging markets.

Previous reporting said President Donald Trump’s administration was considering promoting dollar-denominated stablecoins outside the United States. Bessent has also highlighted their potential to provide additional demand for government debt.

Crypto regulation and the CLARITY Act

Bessent called the lack of progress on the CLARITY Act disappointing. The bill is intended to establish a comprehensive regulatory framework for the U.S. digital-asset market.

He said the Treasury could continue coordinating with the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission despite the legislative delay.

“The Treasury has broad coordination capabilities,” Bessent said, describing the SEC and CFTC as excellent partners.

According to Bessent, coordinated action by the agencies could produce a regulatory framework that other countries could use as a model. He cautioned, however, that regulations adopted by agencies are less durable than statutory law.

Bessent also addressed banks’ refusal to provide services to crypto companies. He said authorities could establish safeguards against such practices even without passage of the CLARITY Act.

“I think we can implement best-in-class regulatory practices and safeguards that won’t allow this to happen again,” he said.

Bessent had previously urged Congress to approve the CLARITY Act, warning that the United States risked losing its leadership in the crypto industry.

Source: Incrypted