With stablecoins, the U.S. now seems ready to lead a new era of digital finance—where dollar ... More dominance is preserved.

The Trump administration is turning stablecoins into a central pillar of U.S. strategy—aiming to cement dollar dominance and help fund the federal government.

The Trump administration is setting the stage for a U.S.-led era of digital finance with stablecoins, aiming to cement dollar dominance and help fund the federal government.

As Federal Reserve Governor Christopher Waller explained in a February speech, stablecoins allow people around the world to hold and use U.S. dollars on public blockchains—without needing a bank account. That single shift opens the door to something far bigger: access to the vast global deposit market.

According to McKinsey & Company, the global financial system holds $117 trillion in bank deposits, including $65 trillion in personal deposits. Stablecoins—especially U.S.-licensed and dollar-denominated ones—offer a way to tap into this market from the bottom up, bypassing traditional banks and reshaping how the dollar circulates globally.

This week, the Senate Banking Committee passed the GENIUS Act—short for Guiding and Establishing National Innovation for U.S. Stablecoins—by a vote of 18–6.

Sponsored by Senator Bill Hagerty and later endorsed by President Trump, the bill sets clear rules for dollar-backed stablecoins and requires issuers to maintain reserves of at least 1:1 in readily convertible assets, such as U.S. dollar–denominated coins and cash, insured bank deposits, balances at the Federal Reserve, short-term U.S. Treasuries, repurchase agreements, and money market funds.

The act also mandates that issuers follow anti-money laundering, sanctions, and cybersecurity regulations.

The bipartisan vote comes after months of debate over the best way to regulate stablecoins and protect the financial system from any risks posed by these new technologies.

“The benefits of strong stablecoin innovation are immense—from enhancing transaction efficiency to driving demand for U.S. Treasuries,” said Hagerty. “We can realize these benefits while also safeguarding macroeconomic stability and the integrity of our financial system with common-sense policies.”

The House Financial Services Committee is expected to vote on a similar bill next month.

Meanwhile, private sector efforts are also gaining momentum. World Liberty Financial (WLFI), a crypto platform backed by President Trump, announced this week that it has raised $550 million through token sales and launched its own dollar-backed stablecoin, USD1.

Cryptocurrencies and stablecoins have increasingly been used to bypass U.S. sanctions and traditional payment systems. But now, Washington appears ready to flip the script—by letting global users hold and spend USD-backed, U.S.-controlled stablecoins without relying on banks. It’s a direct channel for exporting American monetary power, without intermediaries.

Washington’s new approach to crypto and stablecoins? Can’t beat them? Regulate them—and turn them into tools of dollar dominance and geopolitical leverage.

A New Bretton Woods—Onchain

The GENIUS Act isn’t just regulation. It’s the groundwork for a new dollar-based system built on blockchains. If passed, the dollar could spread further—not just through banks and borders, but through crypto wallets and code.

In 1944, the Bretton Woods Agreement placed the dollar at the center of global finance. Today, a new transformation is unfolding—not in closed-door meetings at ski resorts, but in GitHub repositories and smart contracts.

With stablecoins, the U.S. is positioning itself to lead a new era of digital finance—where dollar dominance is secured not by legacy alone, but through renewed strategic and forward-looking public policy, paired with bold, private-sector-led innovation in business and technology, driven by market competition.