Highlights:
- The Trump administration supports cryptocurrencies through regulatory clarity, a strategic Bitcoin reserve, and pro-crypto leadership appointments.
- Stablecoins are expected to generate $2 trillion in demand for U.S. Treasuries, reshaping markets and reinforcing dollar dominance.
The crypto market exploded with enthusiasm when Donald Trump defeated Kamala Harris in the November 2024 election. Between November 5 and December 8, the total crypto market cap rose by 63.36%, driven by optimism around pro-crypto leadership.
However, after Trump’s inauguration, market momentum slowed as the administration adopted a cautious yet strategic approach to crypto regulation. Still, major pro-crypto policies were announced, and key crypto-friendly figures were appointed to top government roles.
Bessent Reaffirms U.S. Commitment to Crypto Innovation
Treasury Secretary Scott Bessent issued a strong statement reaffirming the administration’s support for digital assets. In a recent interview, he revealed bold plans to grow the crypto sector under a strict but supportive regulatory framework.
Bessent harshly criticized the destructive regulatory policies of the previous administration, which he claimed had damaged numerous crypto companies. He assured that the current leadership will foster sustainable innovation through a balanced and improved legal structure.
Will Stablecoins Drive $2 Trillion in Demand for U.S. Treasuries?
In one of his key remarks, Bessent projected that stablecoins could generate $2 trillion in short-term demand for U.S. Treasuries and government securities—a dramatic increase from the current $300 billion.
Stablecoins like Tether (USDT) are typically backed 1:1 by fiat currency (most commonly the U.S. dollar) and maintain reserves in liquid assets, including government bonds. As adoption grows, the issuers of these coins are becoming major buyers of U.S. debt instruments.
This could lead to:
- Lower government borrowing costs
- Stronger global dominance of the dollar
- Easier funding of government spending without reliance on traditional buyers
Tether CEO Paolo Ardoino backed this vision, stating that USDT would help strengthen the dollar’s dominance worldwide.
Meanwhile, the U.S. Senate is preparing a stablecoin regulation bill, expected to provide legal clarity and accelerate institutional adoption. Rumors suggest that Fidelity and JPMorgan are also considering launching their own stablecoins.
The Trump Administration Moves Ahead With Bitcoin Strategy
In March 2025, the administration took a historic step by signing an executive order to establish a strategic Bitcoin reserve, marking the government’s formal entry into the crypto space.
Since Trump’s election:
- The Bitcoin market has surged by 59.31%
- November 2024 alone saw a 37.4% jump
- Last 3 months: +11.7%
- Last 30 days: +17.1%
- Last 7 days: +4.4%
Bessent previously confirmed that the U.S. is open to acquiring additional Bitcoin, including confiscated assets, to strengthen the national reserve.
What’s Next for U.S. Crypto Policy?
The message is clear: The Trump administration is not only verbally supporting crypto—it is actively laying the groundwork for a long-term strategy through:
- Strategic accumulation of Bitcoin
- Forthcoming legislation on stablecoins
- Increased government involvement in the crypto sector
With a $2 trillion stablecoin demand forecast, a pending legal framework, and growing institutional engagement, the United States is positioning itself as a leader in the next wave of the crypto revolution—under Trump’s leadership.
Frequently Asked Questions
Find answers to the most common questions below.
He predicted that stablecoins could create up to $2 trillion in demand for U.S. Treasuries, transforming debt markets and reinforcing the dollar.
Through regulatory clarity, a strategic Bitcoin reserve, and the appointment of pro-crypto leaders to key government positions.
Yes, a stablecoin regulation bill is in progress, and the government plans further integration of digital assets into fiscal strategy.
This article is for general informational purposes only and is not intended to be, and should not be construed as, legal or investment advice. Crypto-assets are highly volatile, so only invest funds that you are willing to lose and use your own research and risk management.
