US Treasury Secretar...

US Treasury Secretary Puts Crypto Alongside AI and Chips in Competition With China

By José Oramas October 28, 2026 In AI, Cryptocurrency, United States

Scott Bessent told Ripple’s Swell conference in New York that the US will win the contest over digital asset infrastructure and come out with a stronger dollar.
He said more than 90% of stablecoins are backed by US dollars, with issuers often holding US government securities as reserves.
Bessent said Treasury could work with the SEC and CFTC on crypto rules after the Senate blocked the CLARITY Act in September.

US Treasury Secretary Scott Bessent has placed digital assets alongside AI and semiconductors in America’s technology race with China, saying a US win in crypto would strengthen the dollar.

Bessent opened Ripple’s Swell conference at The Shed in New York on Tuesday, in conversation with Ripple chief executive Brad Garlinghouse. He argued that reserve currencies have historically drawn their power from military strength.

We will keep our military umbrella, but I think more and more it’s becoming a technology umbrella.

US Treasury Secretary Scott Bessent

He pointed to the split between US and Chinese technology, where countries and companies face a choice over whose AI systems and chips to adopt. Bessent said the financial infrastructure those countries pick could also shape the dollar’s reach.

Stablecoins as Treasury Buyers

More than 90% of stablecoins are backed by US dollars, Bessent said, and their issuers often hold US government securities as reserves. As adoption grows, demand for those securities could rise and make stablecoins an important source of funding for the Treasury, he said.

Bessent added that stablecoins could reach new users in emerging markets who want to protect their savings from currency devaluation.

The Office of the Comptroller of the Currency (OCC) listed the reserves its stablecoin issuers may hold in its final rule under the GENIUS Act on 21 October. They include cash, bank deposits and Treasury securities with 93 days or less to maturity. The rule takes effect on 18 January 2027.

Agencies Fill the CLARITY Gap

The wider push for crypto market rules stalled on 15 September, when the Senate voted 49-50 against taking up the CLARITY Act. It needed 60 votes to advance.

Bessent called the failure a disappointment. He said the Treasury could work with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to advance oversight through agency action.

He described the SEC and CFTC as strong partners in building a framework that could serve as a model for other countries. CFTC Chair Michael Selig has already outlined two planned rules for crypto trading platforms that rely on the agency’s existing powers.

Bessent also said the CLARITY Act would have helped stop banks from cutting off crypto firms, a practice known as debanking. He said regulators could still set best practices and guardrails to prevent it.

Ripple won final OCC approval for its national trust bank on Monday, the day before Bessent’s appearance. Garlinghouse said the charter gives Ripple a federally supervised platform to support its RLUSD stablecoin and provide digital asset custody to enterprises.