Trump advisor sends blunt message on 'massive' dollar demand

Though the U.S. dollar scale (DXY) is inactive struggling to surpass 100 points, the Donald Trump medication thinks the planetary request for the dollar is monolithic and volition lone grow.

And the White House has pinned its anticipation connected a instrumentality focused connected "digital dollars."

Related: Explained: What is simply a stablecoin?

It was successful July 2025 that Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law. The authorities aims to modulate stablecoins pegged to the U.S. dollar.

As the sanction suggests, a stablecoin tries to stabilize its worth by being pegged 1:1 to the U.S. dollar. Since 1 USD-pegged stablecoin holds the aforesaid worth arsenic 1 USD, it is besides called a "digital dollar."

The GENIUS Act mandates stablecoin issuers to backmost their stablecoins with dollar reserves made up of high-quality liquid assets similar U.S. Treasury bills.

The starring stablecoin issuers Tether and Circle are, successful fact, among the largest holders of U.S. Treasury bills.

But USD-pegged stablecoins are facing a large situation connected different legislative beforehand arsenic neither the banking nor the crypto industries look acceptable to compromise connected stablecoin rewards successful the CLARITY Act.

The existent draught has a proviso restricting crypto platforms from offering rewards to stablecoin holders truthful that these platforms can't connection what would beryllium successful information unregulated slope deposits.

Since 1 stablecoin holds the aforesaid worth arsenic that of 1 USD, banks fearfulness their customers would transportation their deposits to crypto platforms successful pursuit of rewards (higher than the interests offered by banks). The crypto manufacture says the banks are acting successful an anti-competitive manner.

Both Trump and Treasury Secretary Scott Bessent have been pressuring some sides to scope a compromise but it's a deadlock truthful far.

• Ripple CEO reveals CLARITY Act deadline

• Coinbase CEO fires backmost aft Bessent blames 'recalcitrant actors'

• White House advisor reveals astonishing hurdle to Bitcoin reserve

Patrick Witt, the Executive Director of the President's Council of Advisors for Digital Assets astatine the White House, said connected March 11 that successful the sound astir the rewards debate, 1 shouldn't hide that the stablecoins compliant with the GENIUS Act volition "actually pb to deposit inflows."

As the global request for the U.S. dollar is massive, foreigners shall exchange their section currencies for stablecoins from a US-based issuer.