Bessent Puts Crypto Alongside AI in the U.S.-China Tech Battle
Bessent sees stablecoins as support for the dollar and wants more clarity around crypto oversight and bank relationships. His comments fit into the broader U.S.-China fight over AI, chips, and digital assets.
Key Takeaways
- Scott Bessent put crypto alongside AI and chips in the tech rivalry between the U.S. and China.
- He said stablecoins can strengthen the dollar and may create extra demand for U.S. Treasury bonds.
- Bessent called for more clarity on oversight and debanking for crypto companies.
Scott Bessent put crypto on the same level as AI and chips in the tech battle between the U.S. and China. The U.S. Treasury Secretary said at Ripple’s Swell conference that digital assets can strengthen the dollar’s global role. He also called for more clarity around oversight and debanking.
Dollar and Technology
Bessent spoke Tuesday with Ripple CEO Brad Garlinghouse and said the power behind reserve currencies has historically often come from military strength, but is increasingly shifting toward technological leadership. In his view, the U.S. remains militarily dominant, but the country’s geopolitical weight is more often shaped by technology.
He also drew a clear line between the American and Chinese tech ecosystems. According to him, companies and countries have to choose between different AI systems and semiconductor technology, and digital assets are part of that too. Bessent said the financial infrastructure countries choose can affect the dollar’s reach.
Stablecoins as a Dollar Lever
The secretary tied his comments directly to stablecoins. He said these tokens can support the dollar by making it easier for people in countries with high inflation or big currency swings to access U.S. dollars.
Bessent also said that more than 90% of stablecoins are backed by U.S. dollars and that issuers often hold U.S. Treasury bonds as reserves. If usage keeps growing, he said, that could increase demand for those bonds and become an extra funding source for the U.S. Treasury Department.
The Trump administration’s broader policy line already took shape earlier with the GENIUS Act, which set a federal framework for stablecoins in July 2025. That law covers things like issuer licenses, reserve requirements, redemption processes, and disclosures. It gives the sector more clarity, while the U.S. market is still waiting for a broader legal framework for crypto.
More Pressure on Regulators
That also brought out the political side of the story. The failure of the Clarity Act in September 2026 left a gap in the division of responsibilities between the SEC and the CFTC, according to Bessent. He called that disappointing, but said the Treasury Department can still take steps together with regulators.
Bessent called the SEC and CFTC “good partners” and said their rules can give crypto companies more clarity, even if those rules do not have the lasting force of legislation. He also addressed debanking, where banks cut crypto companies off from services. In his view, regulators can set up best practices and guardrails to prevent that from happening again.
For European crypto readers, the key point is that Washington no longer sees crypto only as a market, but also as part of economic policy. That could matter for stablecoin issuers, investment products, and crypto companies that depend on U.S. rules and banking relationships.
