Amid growing regulatory clarity around the cryptocurrency market, regulators’ stance on the cryptocurrency market is also changing. On June 18, Treasury Secretary Scott Bessent remarked that cryptocurrency is not a threat to the dollar.
“In fact, stablecoins can reinforce dollar supremacy. Digital assets are one of the most important phenomena in the world right now, yet they have been ignored by national governments for far too long,” he said.
Scott Bessent’s Statement after Senate Clears GENIUS Act
His statement comes a day after the Senate passed a stablecoin bill for the GENIUS Act, which brings much-needed regulatory clarity to the cryptocurrency industry. This approval has already benefited a number of cryptocurrency projects.
“This administration is committed to establishing the United States as a hub for digital asset innovation, and the GENIUS Act moves us one step closer to that goal,” Bessent writes in a post on X.
Shares of Circle Internet surged 18% on Wednesday after the U.S. Senate passed a stablecoin bill. This bipartisan move is seen as a big win for the stablecoin market, including Circle, the world’s second-largest stablecoin, with a market capitalization of $61.4 billion.
The news also boosted Coinbase, whose stock rose 10%, as clearer regulations could drive more crypto adoption. On the flip side, traditional payment giants Mastercard and Visa both dropped 2%, which shows that investors believe this legislation could shake up the existing financial system by favoring crypto-based payments.
Some analysts believe the new stablecoin bill, if passed, could encourage more businesses to use stablecoins by providing clear regulations. Under the proposed law, stablecoins must be fully backed by liquid assets like cash or U.S. Treasury bills, and issuers would need to publicly report their reserve every month.
According to some latest developments, banking giants like Bank of America are preparing to launch a stablecoin pilot program or partnership before fully committing.
Also Read: Stablecoin May Cut US Debt: Treasury Secretary Bessent
