Author: Zoltan Vardai, CoinTelegraph; Compiled by Wuzhu, Jinse Finance

The United States' adoption of stablecoins to maintain the global dominance of the US dollar may bring unexpected benefits to Bit, as Bit is becoming a potential national reserve asset.

At the White House Crypto Summit on March 7, US Treasury Secretary Scott Basant said the US government will use stablecoins to ensure the US dollar remains the world's reserve currency.

"We will think a lot about the stablecoin system, as President Trump has directed, and we will keep the US dollar as the world's primary reserve currency," Basant said.

The Treasury Secretary also reiterated the Trump administration's commitment to ending the crypto war and promised to revoke previous IRS guidance and punitive regulatory measures.

President Trump speaking at the White House Crypto Summit. Source: Associated Press

Before making the above remarks, Trump had just signed an executive order to establish a Bit reserve using crypto seized in government criminal cases. While the order does not involve direct federal Bit purchases, it represents a shift in the government's view of crypto.

Omri Hanover, General Manager of the Gems Trade blockchain launch pad, said Bit may benefit from the growing adoption of stablecoins and the push for regulatory transparency.

"If Trump's policies strengthen the US's financial dominance, Europe's hesitation and 'wait-and-see' attitude may weaken its economic influence," he pointed out, adding:

"This divide creates two market realities: the US accelerating institutional adoption of Bit, attracting capital; while the EU prioritizes compliance, risking capital shifting to the US market."

Meanwhile, two major bills are awaiting congressional approval: the Stablecoin Bill and the Market Structure Bill, aimed at helping to eliminate regulatory uncertainty in the US crypto industry.

At the same time, crypto-friendly lawmakers are focusing on two key legislative priorities - stablecoins and general market structure clarity - which will help eliminate regulatory uncertainty in the US crypto industry. However, Congress has not yet passed any relevant bills.

Stablecoin Issuer Profits Growth May Flow into Bit Investment

The growth in profits of stablecoin issuers may promote Bit investment, further consolidating its position as a store of value.

Tether, the issuer of the world's largest stablecoin USDT, said it will invest 15% of its net profits in Bit to diversify its supporting assets.

Tether's Bit holdings have proven to be profitable, with the company reporting a record $4.5 billion in profits in the first quarter of 2024.

About $1 billion came from operating profits from US Treasury holdings, with the remaining $3.52 billion including market value gains on the company's Bit and gold positions.

Tether's financial reserves, Q1 2024. Source: Tether

BitInfoCharts data shows that Tether's "bc1q" address currently holds over $6.8 billion worth of Bit, making it the sixth largest holder globally.

A report on January 31 said Tether's Bit holdings generated $5 billion in profits for the company in 2024, out of a total annual profit of $13 billion.