David Sacks, President Donald Trump’s top advisor on crypto and AI, said Wednesday that stablecoin legislation advancing in the Senate is expected to pass with “significant bipartisan support” — and could unlock massive demand for U.S. Treasuries.
“We already have over $200 billion in stablecoins — it’s just unregulated,” Sacks said during an appearance on CNBC’s Closing Bell Overtime.
“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.”
The legislation, called the GENIUS Act, aims to regulate stablecoins and recently passed a key procedural vote in the Senate.
With 15 Democrats backing the measure to clear the cloture threshold, it appears proponents have the votes to prevent a filibuster.
“We have every expectation now that it’s going to pass,” Sacks added. However, he didn’t respond to concerns raised by Democrats about whether sufficient safeguards exist to prevent the president and his family from financially benefiting from the legislation.
Democrats have previously criticized the GENIUS Act, partly due to what they say are conflicts of interest involving Trump’s personal cryptocurrency ventures, including a meme coin and a stablecoin launched by his family’s crypto business.
Stablecoins are a type of digital asset that maintain a fixed value by being tied to real-world currencies, such as the U.S. dollar. That makes them less volatile than cryptocurrencies like bitcoin, which surged this week to nearly $110,000.
Tether, the largest stablecoin by market share and backed in the U.S. by Cantor Fitzgerald, controls over 60% of the market.
A Deutsche Bank report estimated that stablecoin transactions reached $28 trillion last year — more than Mastercard and Visa combined.
Sacks, who has become an influential voice in the Trump administration’s tech policy efforts, described the GENIUS Act not just as a regulatory milestone but as a strategy to modernize the U.S. economy’s financial infrastructure.
Stablecoins, he said, could enable “a new, more efficient, cheaper, smoother payment system — new payment rails for the U.S. economy.”
He also suggested that regulating them would help “extend the dominance of the dollar online.”
The White House has strongly supported the bill, even as concerns persist around potential conflicts of interest.
Sacks disclosed he sold $200 million in crypto-related holdings before taking his White House post. Meanwhile, Trump and his family have ramped up efforts to build a business empire around digital assets.
They financially back World Liberty Financial, which recently launched its own stablecoin, USD1, backed by U.S. Treasuries and cash deposits.
In a major vote of confidence, Abu Dhabi’s MGX investment fund pledged $2 billion in USD1 to Binance — the world’s largest cryptocurrency exchange. It marks Binance’s largest crypto investment to date.
Still, the bill’s path to final passage could face hurdles. Senator Josh Hawley, R-Mo., attached a controversial rider to the legislation that would cap credit card late fees — a move some observers see as a poison pill that could cost banking industry support and stall the bill.
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