Bitcoin may benefit from US stablecoin dominance push

4 hours ago

The United States propulsion to support the dollar’s planetary dominance done stablecoin adoption could person unintended benefits for Bitcoin, arsenic the world’s largest cryptocurrency is emerging arsenic a imaginable national reserve asset.

US Treasury Secretary Scott Bessent said the US authorities will usage stablecoins to guarantee that the US dollar remains the world’s planetary reserve currency during the White House Crypto Summit connected March 7.

“We are going to enactment a batch of thought into the stablecoin regime, and arsenic President Trump has directed, we are going to support the US [dollar] the ascendant reserve currency successful the world, [...]” Bessent said.

Bessent besides repeated the Trump administration’s committedness to end the warfare connected crypto and committed to rolling backmost erstwhile Internal Revenue Service guidance and punitive regulatory measures.

US Government, United States, White House, Donald Trump, Stablecoin

The comments came conscionable earlier Trump signed an enforcement bid establishing a Bitcoin (BTC) reserve utilizing cryptocurrency forfeited successful authorities transgression cases. While the bid does not impact nonstop national Bitcoin purchases, it represents a displacement successful however the authorities views BTC.

BTC whitethorn payment from the increasing stablecoin adoption and propulsion for much regulatory clarity, according to Omri Hanover, the wide manager astatine Gems Trade blockchain launchpad.

“If Trump’s argumentation strengthens US fiscal dominance, Europe’s reluctance and ‘wait-and-see’ attack could weaken its economical leverage,” helium told Cointelegraph, adding:

“This disagreement creates 2 marketplace realities: US accelerates Bitcoin’s organization adoption, drafting capital; and EU prioritizes compliance, risking a superior displacement to US markets.”

Meanwhile, 2 large bills await legislature approval: the Stablecoin measure and the Market Structure bill, which purpose to assistance assistance the regulatory uncertainty astir the US crypto industry.

Growing stablecoin issuer profits whitethorn travel into Bitcoin investments

The increasing profits of stablecoin issuers could lend to Bitcoin investments, further strengthening its presumption arsenic a store of value.

Tether, the issuer of the world’s largest stablecoin, Tether USDt (USDT), said it would put 15% of its nett net into Bitcoin to diversify its backing assets.

Tether’s Bitcoin holdings person proven to beryllium lucrative erstwhile the steadfast posted a record $4.5 cardinal profit for the archetypal 4th of 2024.

Approximately $1 cardinal stemmed from operating profits derived from US Treasury holdings, portion the remainder of $3.52 cardinal comprised the market-to-market gains successful the firm’s Bitcoin holdings and golden positions.

Tether’s “bc1q” code presently holds implicit $6.8 cardinal worthy of Bitcoin, making it the world’s sixth-largest Bitcoin holder, BitInfoCharts information shows.

Tether’s Bitcoin holdings earned the institution $5 cardinal successful profits during 2024, from its full $13 cardinal yearly profit, Cointelegraph reported connected Jan. 31.