Treasury Chief Bessent Drops Bombshell: ‘Crypto Poses No Risk to Dollar’ as GENIUS Act Nears Finish Line

In a move that sent shockwaves through Wall Street and Silicon Valley alike, Treasury Chief Eleanor Bessent boldly declared cryptocurrencies 'not a threat' to the U.S. dollar's dominance. The statement comes as the controversial GENIUS Act clears its final legislative hurdles.

The Digital Dollar's Unshaken Throne

Bessent's remarks cut through years of doomsday predictions about crypto dethroning fiat currencies. 'The dollar's position remains unchallenged,' she stated during a press conference that had crypto traders scrambling to adjust their positions.

GENIUS Act: Regulatory Watershed Moment

Washington insiders confirm the groundbreaking legislation—which establishes the first comprehensive crypto framework—could reach the President's desk within weeks. The bill reportedly includes provisions that would make even the most hardened crypto anarchists grudgingly nod in approval.

Market Reacts With Cautious Optimism

BTC prices showed unusual stability following the announcement—perhaps the first time in history that a government statement didn't trigger a 20% swing in either direction. Meanwhile, traditional finance executives were spotted quietly moving their 'blockchain is a scam' PowerPoint slides to the recycle bin.

The final irony? This regulatory clarity comes just as banks finally figured out how to charge $50 fees for crypto transactions too.

Dollar Supremacy vs. European Monetary Sovereignty

The global monetary implications of America’s pro-crypto stance have created a fascinating geopolitical dynamic that extends far beyond traditional trade concerns. European policymakers recognize that digital assets represent a new front in currency competition.

Pierre Gramegna, managing director of the European Stability Mechanism, warned that the Trump administration’s favorable approach toward dollar-denominated stablecoins could affect the eurozone’s “monetary sovereignty and financial stability” by encouraging the adoption of alternative payment methods that bypass European financial institutions entirely.

Italy’s Giorgetti articulated the most direct challenge to European monetary policy, explaining how U.S. stablecoin policies inadvertently offer European savers a pathway to invest in risk-free dollar-denominated assets without requiring banking relationships with American institutions.

This development threatens to fragment Europe’s payment industry while strengthening the dollar’s role as the preferred store of value for international transactions.

Does Europe really need a digital euro? Experts weigh in on privacy, regulation, and the role of stablecoins at UN:BLOCK crypto conference#DigitalEuro #CBDChttps://t.co/sjQoXA1ayi

The concern has prompted the European Central Bank to accelerate its digital euro project, though implementation remains years away, with a rollout not anticipated until 2028 or 2029.

While Europe sees it as a threat, the pent-up demand for clarity and the GENIUS Act’s comprehensive framework could trigger a wave of institutional adoption that further entrenches dollar-denominated stablecoins as the backbone of global crypto trading and cross-border payments.

GENIUS Act Near Victory Amid Political Controversy

The GENIUS Act’s path to approval has been marked by intense partisan debate. Senator Elizabeth Warren led Democratic opposition by highlighting potential conflicts of interest related to Trump’s cryptocurrency ventures.

Warren’s concerns center on Trump’s USD1 stablecoin, which reportedly generated $57 million last year through the World Liberty Financial platform. This raises questions about whether the president could profit from legislation he signs into law.

Despite these objections, 18 Democrats joined most Republicans in supporting the Senate version.

Senator Cynthia Lummis has emerged as a key advocate for broader crypto legislation, arguing that while the GENIUS Act represents progress, comprehensive market structure legislation remains necessary to establish the United States as the global “crypto capital.”

Today brings us one step closer to becoming a welcoming home for digital asset companies. Now, let’s finish the job & pass market structure legislation to fulfill @POTUS' vision of becoming the crypto capital of the world. pic.twitter.com/tyz6Kbc5qK

Trump’s urgent call for House passage without amendments is a strategic calculation to lock in digital asset policy before potential complications arise from extended congressional negotiations or bundling with more contentious crypto legislation.

The president’s allies view rapid approval as essential to maintaining momentum for his administration’s broader digital asset agenda, which includes establishing strategic Bitcoin reserves and positioning America as the global blockchain development hub.

The GENIUS Act represents Congress’s first major attempt to regulate the rapidly expanding stablecoin market, which has grown from under $10 billion to $239 billion in just five years.

The legislation WOULD establish a federal licensing system requiring stablecoin issuers to maintain full 1:1 backing with U.S. dollars while restricting reserves to redemptions and low-risk investments such as Treasury repos.

Before now, the regulatory uncertainty has contributed to a 14% decline in the U.S. share of global blockchain developers since 2018, falling to just 26% by 2023.