US Administration Endorses Stablecoins: Boosting Dollar Strength & Digital Economy

The current US administration has signaled a clear and robust endorsement of digital assets, particularly stablecoins, viewing them not as a threat but as a strategic economic advantage. This proactive stance was recently underscored by Vice President JD Vance during a significant cryptocurrency conference, where he articulated the government’s commitment to fostering innovation within the digital economy. His remarks highlighted the potential of dollar-pegged stablecoins to significantly bolster the nation’s economic strength and global financial standing.

Government’s Stance on Digital Currencies

Vice President Vance, speaking at the Bitcoin 2025 conference in Las Vegas, firmly stated, “In this administration, we do not believe stablecoins threaten the integrity of the U.S. dollar. Quite the contrary. We see them as a force multiplier for our economic power.” This statement reinforces a consistent pro-crypto agenda championed by the Trump-Vance administration, following President Trump’s earlier public appearances where he also expressed support for digital assets.

Legislative Progress and Economic Vision

Stablecoins, digital currencies designed to maintain a stable value relative to a fiat currency like the US dollar, have become a focal point of legislative efforts. The administration is actively supporting the passage of the GENIUS Act, a comprehensive bill aimed at regulating these assets. This initiative recently cleared a crucial Senate vote with bipartisan support, including 15 Democratic senators. However, it still faces challenges in the House of Representatives, where an alternative proposal is under consideration.

David Sacks, a senior advisor to President Trump on crypto and artificial intelligence, emphasized the urgent need for regulation, noting that over $200 billion in stablecoins currently operate without clear oversight. Sacks suggested that effective legislation could generate trillions of dollars in demand for US Treasury bonds, presenting a substantial economic opportunity.

While some Democratic lawmakers have raised concerns about potential conflicts of interest due to President Trump’s involvement with his own meme coin and a family-linked stablecoin venture, Vice President Vance focused on the broader economic benefits. He asserted that dollar-linked stablecoins, especially post-GENIUS Act approval, “will only benefit the American economy and will only strengthen the dollar.” Vance also mentioned the government’s strategic Bitcoin reserve and broader efforts to reverse restrictive regulations, revealing his own holdings of a “good amount of Bitcoin.” He also openly criticized former SEC Chair Gary Gensler, stating, “We fired Gary Gensler, and we’re going to fire everyone who thinks like him.”

Broader Regulatory Shifts Supporting Crypto

Beyond legislative efforts, the administration has taken decisive actions to create a more favorable regulatory environment for digital assets. A significant move includes the Department of Labor’s reversal of a 2022 directive that discouraged cryptocurrency investments within retirement plans. Secretary of Labor Lori Chavez-DeRemer clarified that “fiduciaries, not bureaucrats, should decide whether crypto has a place in 401(k)s.”

This decision is part of a wider regulatory overhaul:

• Banks are now permitted to custody cryptocurrencies following the repeal of the restrictive accounting rule SAB 121.
• Previous restrictive guidelines from the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) have been revoked.
• The Federal Reserve has also begun to adopt a more accommodating stance towards the digital asset ecosystem.

These combined policy shifts are designed to unlock further growth and innovation within the US digital asset sector.