Trump Administration to Eliminate Regulatory Barriers for Bitcoin and Stablecoins, Says US Treasury Secretary
Scott Bessent, the US Treasury Secretary, reaffirmed the administration’s dedication to advancing Bitcoin and blockchain technology within the United States.
In his address to the American Bankers Association in April, he stated that the Donald Trump administration is committed to fostering innovation across the nation. This includes reforming the banking system by integrating blockchain technology and modern payment systems.
Regulatory Clarity to Enhance Innovation
Bessent indicated that his administration aims to pinpoint and remove any barriers to the adoption of blockchain technology. Notably, since succeeding Janet Yellen in January, the Treasury Secretary has demonstrated a strong commitment to this initiative.
He has been instrumental in the formation of the US Bitcoin reserve and is working alongside White House Digital Assets Executive Director Bo Hines to explore budget-neutral strategies for acquiring Bitcoin.
In general, the Trump administration has actively encouraged Congress to pass favorable pro-crypto regulations. Recently, the GENIUS stablecoin act moved closer to final approval, achieving a positive vote of 68-30.
Moreover, the crypto market structure bill has garnered bipartisan support from both the US House Agriculture Committee and the US House Financial Services Committee. These measures aim to provide regulatory clarity for digital assets in America.
Bessent believes that establishing a clear framework for cryptocurrency would facilitate the integration of blockchain technology within the banking sector. Additionally, he posited that stablecoins would develop new payment channels for the traditional financial system and “unleash the immense potential of the American capital market.”
USD-Pegged Stablecoin Market Expected to Reach $2 Trillion by 2028
Bessent highlighted the significance of the stablecoin market for the US dollar’s global dominance in a speech at the Senate Appropriations Committee hearing on Wednesday. He emphasized that cryptocurrencies would enhance the USD’s status in the international financial landscape.
However, he acknowledged the necessity for regulation. He stated that legislation like the GENIUS Act would promote mainstream acceptance of US dollar-pegged stablecoins and significantly expand their influence both locally and globally.
Bessent also forecasted an expansion in the USD-based stablecoin market, predicting it could reach $2 trillion within three years. Given the current market capitalization of $246.6 billion, this implies a more than sevenfold increase.
Bessent is not alone in this forecast; AI and crypto authority David Sacks has also indicated that the US dollar stablecoin market will attract trillions in liquidity to US Treasury bills.
Disclaimer: This content serves informational purposes only and should not be interpreted as financial advice. The views expressed in this article may reflect the author’s personal opinions and do not necessarily represent the views of The Crypto Basic. Readers are encouraged to conduct comprehensive research before making any investment decisions. The Crypto Basic accepts no responsibility for any financial losses.
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