Scott Bessent Projects $2 Trillion Stablecoin Boost to U.S. Treasuries

The Trump administration is accelerating its push into digital assets, with Treasury Secretary Scott Bessent projecting that stablecoins could create a staggering $2 trillion in demand for U.S. Treasuries over the next several years. The move signals a dramatic reversal from the regulatory tone of the previous administration and aims to solidify America’s dominance in both global finance and emerging digital markets.

In recent public remarks and Congressional testimony, Treasury Secretary Scott Bessent outlined the Trump administration’s proactive stance on fostering digital asset innovation. He emphasized the need for a clear regulatory framework to support the growth of blockchain finance, contrasting this with what he described as the previous administration’s ineffective and restrictive approach. Bessent indicated that under the new strategy, the U.S. aims to become the premier destination for digital asset development while reinforcing the global role of the U.S. dollar.

Central to the administration's approach is the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a bipartisan bill that would create a clear legal framework for the issuance and management of stablecoins.

The GENIUS Act passed a key procedural vote in the Senate earlier this month, clearing the path for final approval in the coming weeks. The bill would allow both banks and licensed non-bank entities to issue stablecoins under stringent reserve and auditing requirements. Stablecoin reserves, by design, are typically invested in short-term U.S. Treasuries, which Bessent emphasized as a massive and underappreciated source of demand for U.S. government debt.

That future may already be taking shape. As of May 2025, major stablecoin issuers such as Tether and Circle collectively hold tens of billions of dollars in U.S. Treasury securities to back their digital tokens. Tether’s most recent attestation report showed over $90 billion in reserves, with the majority in U.S. T-bills, while Circle holds a similar ratio.

Beyond stablecoins, the Trump administration has already established a Strategic Bitcoin Reserve—a controversial initiative that allocates a portion of federal resources into Bitcoin as a sovereign asset. The reserve is positioned as a hedge against future monetary instability and a strategic move to reinforce U.S. leadership in the evolving digital currency landscape.

While Treasury Secretary Bessent has not disclosed exact figures, senior White House officials indicate that the federal reserve could expand before the end of 2025. Several states, including Texas and New Hampshire, have moved ahead with their own initiatives—New Hampshire having already established a state-level Bitcoin treasury.

Despite strong market enthusiasm, the Trump administration’s close alignment with the crypto industry has raised ethical questions. Critics point to President Trump’s memecoin and the family’s involvement in World Liberty Financial, a private crypto-financial company, as potential sources of conflict of interest.

Democratic lawmakers have introduced the End Crypto Corruption Act, which would prohibit sitting presidents and senior officials from holding or promoting personal cryptocurrency assets. “This administration is blurring the line between public service and personal enrichment,” said Sen. Jeff Merkley (D-Ore.) during a press conference last week.

Treasury Secretary Scott Bessent and the broader Trump administration remain steadfast in their commitment to blockchain-based financial reform. During a recent testimony before the House Financial Services Committee, Bessent emphasized, "We believe that the United States should be the premier destination for digital assets." He highlighted the administration's efforts to promote clear regulatory frameworks and support private sector solutions, aiming to encourage innovation and maintain U.S. leadership in the evolving digital asset landscape.

If the GENIUS Act passes and the U.S. establishes firm regulatory guardrails for digital assets, America could become the undisputed global leader in blockchain finance, an outcome that would ripple across global markets, trade settlements, and central banking policy.

As the world watches Washington, the stakes are enormous, not only for investors and crypto firms but for the architecture of the 21st-century global financial system.