Key Takeaways
- David Sacks says the GENIUS Act could unlock trillions in Treasury demand.
- The bill passed a key Senate vote with bipartisan support from 15 Democrats.
- Ethics concerns persist over Trump family ties to a new stablecoin, USD1.
White House crypto advisor David Sacks said the administration expects the GENIUS Act — a key stablecoin regulation bill — to pass the Senate with bipartisan support, claiming it could unlock trillions in demand for U.S. Treasuries.
Sacks told CNBC:
We already have over $200 billion in stablecoins — it’s just unregulated. 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.
Legislative progress & ethical concerns
The bill cleared a procedural vote this week with 15 Democrats crossing the aisle to support it, breaking the filibuster threshold.
While Sacks expressed confidence in passage, he avoided addressing ethics concerns raised by Democrats over President Trump’s personal ties to crypto.
Trump family & stablecoin investments
The Trump family is financially backing World Liberty Financial, which launched its own stablecoin, USD1, backed by Treasuries and dollar deposits.
A $2 billion investment from Abu Dhabi’s MGX fund into USD1, via Binance, marks the largest crypto investment for the exchange.
Challenges & market dynamics
Despite the momentum, the bill faces hurdles. Senator Josh Hawley added a controversial credit card late fee cap to the legislation — a move that could jeopardize support from banking allies.
Growth in stablecoin usage
Stablecoin usage continues to grow, with Deutsche Bank reporting $28 trillion in transactions last year — more than Visa and Mastercard combined.
Tether, the market leader, holds over 60% share, banked in the U.S. by Cantor Fitzgerald.
