the McHenry bill is passed in the US, will it strengthen the dollar as the world's reserve currency?
The USD stable coins are backed and pegged mostly with fiat USD, that means as more people are buying the stable coins, the company that are offering the stable coins will buy more USD fiat. People across the world can buy the stable coin easily on exchanges and this is increasing the strength of USD as a foreign reserve.
Unfortunately, it is not. Stablecoins are virtually pegged to the dollar, but technically American treasuries are backing the coins.
China and other countries are slowly starting to get rid of treasuries, and there is no one to sell treasuries. And here companies with their stablecoins are forced to buy these obligations.