Bessent Urges U.S. Leadership in Digital Assets as Senate Rejects GENIUS Act 48-49 Amid Democratic Concerns Over Trump's Crypto Ties

U.S. Treasury Secretary Scott Bessent testified before the House Financial Services Committee on the state of the international financial system, emphasizing the importance of digital assets for U.S. economic strategy. Bessent expressed a view that a Central Bank digital currency would signify weakness, not strength, in the U.S. financial system. During his testimony, Bessent highlighted the potential for digital assets to drive up to $2 trillion in demand for U.S. Treasuries. He advocated for the U.S. to become the premier destination for digital assets, suggesting that such a position could enhance the global usage of the U.S. dollar. Bessent's comments come amidst ongoing discussions in Congress regarding cryptocurrency regulation, with the Senate facing a pivotal vote on the GENIUS Stablecoin Act. The Act aims to establish a regulatory framework for stablecoins, which are cryptocurrencies pegged to the value of an asset like the U.S. dollar. The Senate's vote on the GENIUS Act failed with a result of 48-49, due to Democratic opposition and concerns over President Trump's involvement in cryptocurrency ventures. Senator Elizabeth Warren and other Democrats raised ethical concerns about the potential for Trump to profit from his crypto ventures. Bessent criticized the Senate's decision to block the GENIUS Act, calling it a missed opportunity for American leadership in the digital asset space.