The White House’s top cryptocurrency official has declared that the proposed stablecoin legislation could unlock trillions of dollars in value for the US Treasury.
During an interview on Wednesday, David Sacks, President Donald Trump’s top crypto and artificial intelligence advisor, made the bold prediction.
“If we provide the legal clarity and legal framework for this, I think we could create trillions of dollars of demand for our Treasuries practically overnight, very quickly.” Sacks said in an interview.
The targeted legislation is the GENIUS Act, which is short for Guiding and Establishing National Innovation for US Stablecoins. It would seek to establish federal standards for how stablecoins are originated and governed.
This week, the bill passed a key test in the US Senate on a 66-32 cloture vote. This means it has cleared the 60-vote threshold needed to overcome a filibuster. Fifteen Democrats sided with Republicans in endorsing the measure — a testament to unusual bipartisan support.
Under the bill, stablecoin issuers must hold reserves to cover every token they put into circulation. Those reserves must be easily accessible and safe assets, such as cash or US Treasury bonds. The idea is to make sure stablecoins remain exactly that: stable.
David Sacks described the bill as “a national economic strategy” that would strengthen the US dollar in the internet industry. He said stablecoins provide a new, more efficient, cheaper, and real-time settlement payment system.
Trump family’s crypto involvement raises financial and ethical concerns
The bill has gained support but has also courted controversy — mostly because of the deep ties between the Trump family and the crypto industry.
World Liberty Financial launched its stablecoin, USD1, backed by President Trump’s son, Donald Trump Jr.
US Treasuries and dollar deposits collateralize this coin — the precise type of asset that the GENIUS Act would sanction and regulate.
Earlier this month, Abu Dhabi-based investment fund MGX pledged a significant investment in USD1, routing the funds through Binance, the world’s largest crypto exchange. This marks the largest investment in the Trump-linked stablecoin to date.
The development has alarmed many Democrats, who warn that the bill could funnel money directly into the President’s and his family’s financial pockets, creating an unprecedented conflict of interest.
Senator Elizabeth Warren and other critics demand stronger ethical safeguards be incorporated into the legislation to prevent elected officials from profiting personally.
Despite those fears, Sacks expressed confidence that the bill would pass. However, he declined to address questions regarding Trump’s financial ties to crypto.
Investors flock to stablecoins as Bitcoin surges past $110,000
Stablecoins are digital currencies pegged to real-world assets like the United States dollar. Unlike Bitcoin or many other cryptocurrencies, stablecoins are intended to remain steady and easy to use as payment.
Their popularity is skyrocketing. A recent report by Deutsche Bank revealed that transactions of $28 trillion worth of stablecoins were conducted last year — more than even Visa and Mastercard combined.
The stablecoin space is currently led by Tether, representing over 60% of the market, and banked in the US by Cantor Fitzgerald.
For now, bitcoin keeps soaring. It reached a fresh high on Wednesday at nearly $110,000 a coin.
Sacks believes that stablecoins can be a tool to help the US keep the dollar strong in a world that’s going online and fast. “It also gives the dollar continued dominance online,” he said.
