#OnChainInsights Strengthening the US dollar as a global reserve currency

Some industry observers have interpreted Trump’s executive order on cryptocurrencies as a signal of his pro-crypto stance. Others claim the goal is to ensure the US dollar remains the world’s reserve currency.

In a recent interview with Cointelegraph, attorney David Lesperance said the executive order was designed to position the United States as a leader in the development of digital assets. However, he said that support would end if developments threatened the dollar’s ​​status as the global reserve currency.

Following the bill's release, lawmakers echoed the same sentiment.

Hill said in a press release that implementing the stablecoin framework would strengthen the dollar as a global reserve currency:

“By implementing a clear regulatory structure for stablecoins, we can support continued innovation, strengthen the US dollar’s ​​position as the global reserve currency, and protect consumers and investors.”

Meanwhile, Senate Banking Committee Chairman Tim Scott said that establishing a regulatory framework for stablecoins is crucial to ensuring innovation in the United States while "strengthening the global standing of the US dollar."

Related: Trump's executive order raises EU concerns about US dollar stablecoin dominance

Subjecting stablecoins to Federal Reserve regulations

The latest stablecoin bill follows a Senate effort to introduce a bill that also aims to create a regulatory framework for stablecoins.

On February 4, U.S. Senator Bill Hagerty introduced the "Guiding and Establishing National Innovation for American Stablecoins (GENIUS) Act." The bill aims to advance Trump's pledge to make the United States the cryptocurrency capital and provide a framework that supports innovation. The bill received support from Senators Scott, Kirsten Gillibrand, and Cynthia Lummis.

In a press release announcing the discussion draft, Hagerty said stablecoins could boost demand for US Treasuries and improve transaction efficiency.

“We need legislation that creates a safe, pro-growth regulatory framework that will unleash innovation and advance the President’s mission to make America the crypto capital of the world,” Hagerty added.