White House crypto and AI advisor David Sacks expressed confidence that the stablecoin legislation moving through the Senate will pass with “significant bipartisan support,” potentially transforming U.S. Treasury demand. Speaking on CNBC’s “Closing Bell Overtime,” Sacks highlighted that over $200 billion in stablecoins already exist in an unregulated environment, arguing that proper legal frameworks could “create trillions of dollars of demand for our Treasuries practically overnight.” The GENIUS Act successfully cleared a crucial procedural vote in the Senate, with 15 Democrats joining Republicans to surpass the filibuster threshold, signaling broad legislative support despite previous resistance.
Sacks positioned the legislation as both a cryptocurrency breakthrough and a national economic strategy, emphasizing that stablecoins offer “new, more efficient, cheaper, smoother payment rails for the U.S. economy” while extending dollar dominance online. The market significance is substantial, with Deutsche Bank reporting that stablecoin transactions reached $28 trillion last year—surpassing the combined volume of Mastercard and Visa. Tether currently dominates over 60% of the stablecoin market, while itcoin">Bitcoin reached new records near $110,000, highlighting the growing importance of regulated digital asset frameworks.
However, significant ethical concerns continue to shadow the legislation due to President Trump’s extensive cryptocurrency investments and family ventures. Democrats have raised objections about unprecedented conflicts of interest, particularly given Trump’s personal meme coin and his family’s crypto business stablecoin. The Trump family’s World Liberty Financial recently launched USD1, a Treasury-backed stablecoin that received a $2 billion investment from Abu Dhabi’s MGX fund through Binance. While Sacks disclosed selling $200 million in crypto holdings before joining the White House, critics argue that the administration’s aggressive backing of stablecoin legislation while simultaneously building a crypto empire creates problematic conflicts.
The legislation’s path to final passage faces additional hurdles beyond ethics concerns, including a potentially problematic amendment from Senator Josh Hawley that would cap credit card late fees—viewed as a “poison pill” that could alienate banking industry allies. Despite these challenges, the bipartisan support demonstrated in the procedural vote suggests momentum for comprehensive stablecoin regulation that could reshape both the cryptocurrency landscape and Treasury market dynamics.
