Bessent says stablecoin bill will boost demand for Treasuries, dollar assets

U.S. Treasury Secretary Scott Bessent said on Wednesday that legislation to create a framework for stablecoins backed by U.S. Treasury debt would help cement the dollar's position as the world's reserve currency and create demand for at least an additional $2 trillion worth of Treasuries. "This administration is committed to keeping the reserve currency status and enhancing that, and I believe that stable coin legislation backed by US Treasuries or T bills will create a market that will expand US dollar usage via these stable coins all around the world," Bessent told a U.S. Senate Appropriations subcommittee hearing. "And I think that 2 trillion is a very reasonable number, and I could see it greatly exceeding that."