Bessent: Stablecoins Could Become an Important Source of U.S. Treasury Funding

Key Facts

U.S. Treasury Secretary Scott Bessent said his department can use its coordinating authority to work with the Securities and Exchange Commission and the Commodity Futures Trading Commission on a framework for regulating cryptocurrencies. He made the remarks at the Ripple Swell conference, describing the agencies as "good partners" in drafting rules that could become a model for other countries. Bessent called the CLARITY Act’s stall disappointing, but said Treasury can advance oversight through agency action. That does not mean Congress has passed the bill or that its path is over; a procedural motion to advance H.R.3633 stalled in the Senate. The focus for markets now turns to regulators’ ability to act in the absence of new federal legislation.

On September 15, a motion to proceed to the CLARITY Act received 49 votes to 50, and the vote was not a final vote on passage of the bill. The measure under consideration was to close debate and proceed to the bill, according to the Senate record. The legislative path therefore stalled at that step, though the vote alone did not establish the bill’s later fate. Agencies had already begun regulatory actions in areas related to crypto assets. CFTC Chairman Michael Selig said the commission and the SEC have the legal authority to issue rules creating a federal market structure. He added that agency action cannot indefinitely replace a legislative framework enacted by Congress.

Bessent linked the importance of crypto to the dollar’s standing, saying digital assets can strengthen its global dominance as technology plays a growing role in U.S. economic influence. Speaking about stablecoins, he said more than 90% are backed by the dollar and their issuers often hold U.S. government securities in their reserves. He said wider use could increase demand for those securities, tying the sector’s growth to a source of government funding. "I think they will be an important source of Treasury funding," he said. These potential benefits remain part of the case Bessent made for supporting regulation of the sector, rather than a financial outcome already realized.

Bessent’s call intersects with existing regulatory actions, although each addresses a different part of the market. In August, the SEC proposed a "crypto asset regulation" framework that includes a one-time exemption for offerings of up to $5 million over a four-year period. The proposal also included an exemption for offerings of up to $75 million in each 12-month period. On September 17, the SEC granted a temporary, conditional exemption to facilitate trading in certain tokenized stocks through tokenized securities trading platforms. It then proposed amendments on October 1 that would allow, under certain conditions, regulated advisers and funds to self-custody some crypto assets or hold them with a state-chartered trust company, while updating recordkeeping and disclosure requirements.

The CFTC, for its part, published an advance notice of proposed rulemaking on October 5, seeking public comment on a framework to regulate retail commodity transactions tied to crypto assets. These steps show regulatory work advancing along more than one track, from asset offerings to custody and trading. But the commission’s chairman acknowledged that agency action is not equivalent to legislation that sets the legal framework permanently. Bessent said regulators’ rules could give crypto companies greater clarity, while acknowledging they "lack the durability of legislation." He also addressed concerns that companies in the sector could be denied banking services, saying best practices and regulatory safeguards could prevent that from happening again.

Cryptocurrency prices remained weak in coverage published on the morning of October 27, alongside Bessent’s remarks. CoinDesk reported that Bitcoin was trading below $80,000 and below its 50-day moving average, a sign the report described as weakness in the near term. XRP was also down 0.5% since midnight UTC, despite regulatory approval for Ripple to establish a national trust bank. The previous day, Bitcoin was at $80,425.7, down 0.3% at 11:01 a.m. Eastern time, according to Investing.com. The report linked weak appetite for cryptocurrencies to rising oil prices and anticipation of central bank meetings, and did not directly link the price moves to Bessent’s remarks.

Official dates remain in focus over the coming days: the Federal Reserve meets on October 27 and 28, and its calendar lists a press conference on October 28. The public calendar does not establish a specific time for the interest rate decision or the statement’s release. On October 30, the CFTC’s schedule lists the release of the Commitments of Traders report. These reports are typically released at 3:30 p.m. Eastern time and generally reflect data from the previous Tuesday. The report shows futures and options positions, providing a view of traders’ positions in those markets.