The scale of US dollar stablecoins could soar to $2 trillion, driving global demand for US Treasuries.

The U.S. Treasury Secretary stated at a Senate hearing that the market value of stablecoins pegged to the dollar could surge to $2 trillion in the coming years. He emphasized that the government is taking measures to solidify the dollar's status as the reserve currency, support legislation to integrate stablecoins more deeply into the financial system, and establish strict rules to ensure they are fully backed by Treasury bills and short-term government debt.

The finance minister pointed out that concerns about the future of the US dollar have arisen multiple times in history, but each time the dollar has made a strong comeback. He believes that cryptocurrency will become the next important phase in consolidating the dollar's position. In response to inquiries, the finance minister reiterated the government's commitment to maintaining and strengthening the dollar's status as a reserve currency. He also mentioned that Congress is establishing clear rules requiring that stablecoins pegged to the dollar must be backed by high-quality assets at a 1:1 ratio.

The treasury secretary believes that the prediction of $2 trillion is not a fantasy. He stated: "I think $2 trillion is a reasonable estimate, and the actual number could far exceed this level." As the use of stablecoins in everyday transactions increases, stablecoins backed by U.S. debt will expand the global influence of the dollar. He also expects that dollar-pegged stablecoins will stimulate global demand for U.S. government bonds, which aligns with broader fiscal goals.

At the same time, Congress is actively advancing new stablecoin legislation. The Senate recently passed a key procedural vote with 68 votes in favor and 30 against, and the final bill is expected to be passed as early as next week. The bill has the support of the president, major cryptocurrency lobbying groups, and some influential members of both parties.

A day before the Senate vote, the House Financial Services Committee and the Agriculture Committee passed a more comprehensive cryptocurrency bill. Multiple cryptocurrency organizations invested heavily in the last election to support pro-cryptocurrency candidates and policies, and are now pushing this bill to ensure that stablecoins are more widely used in the payment sector.

Retailers are also strongly supporting this technology, hoping that stablecoins can provide them with an alternative to credit card processing and reduce the high processing fees that have long plagued large merchants. Retailers not only support the stablecoin legislation but are also actively lobbying for additional provisions requiring major banks to offer more credit card processing network options. However, Senate leadership is expected to block this effort.

The banking industry has mixed opinions on the bill. Small banks warn that stablecoins may siphon off deposits from traditional banking systems, reducing loans and everyday credit channels. Large banks, on the other hand, are exploring the creation of their own stablecoins to control customer funds and profit from the reserves supporting stablecoins.

The treasury secretary emphasized that as long as these stablecoins are fully backed by U.S. government debt, the demand for the U.S. dollar both domestically and internationally will become even stronger. He mentioned that although analysts predict an additional $1 trillion in stablecoin purchases by the U.S. Treasury by 2030, the Treasury believes there is even greater potential. "This is not just a possibility, but a goal we are actively working to achieve," he stated.

The bill is a top priority for the Treasury Department and the White House. The chairman of the Senate Banking Committee confirmed that hearings will be held in July on a broader cryptocurrency regulatory bill, but the bill may not pass until the fall. The Senate Majority Leader stated that the Senate will work to pass this stablecoin bill in the coming days and urged the House to act quickly to send it to the President.