A landmark stablecoin regulation bill backed by the White House is gaining traction in the U.S. Senate, with the potential to unleash trillions in demand for U.S. Treasuries, according to Donald Trump’s top advisor on crypto and artificial intelligence, David Sacks.
In a May 21 interview with CNBC, Sacks revealed that the administration expects the Senate to pass the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The bill cleared a significant legislative hurdle this week after 66 senators — including 15 Democrats — voted to advance it, securing enough bipartisan support to sidestep a filibuster.
“We already have over $200 billion in stablecoins — it’s just unregulated,”
Sacks told 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 GENIUS Act aims to establish a comprehensive federal framework for regulating stablecoin issuers and integrating dollar-backed digital currencies into the U.S. financial system. Sacks positioned the bill as an economic catalyst, describing stablecoins as a faster, cheaper, and more efficient alternative to traditional payment networks.
However, the bill has drawn scrutiny due to Trump’s financial ties to the crypto sector. Critics point to the Trump family’s support for World Liberty Financial, which recently introduced USD1 — a stablecoin backed by U.S. Treasuries and fiat dollar deposits. Notably, Abu Dhabi’s MGX Fund has invested $2 billion in USD1 through Binance, a crypto exchange that recently admitted to violating U.S. anti-money laundering laws as part of a $4.3 billion settlement.
While Sacks remained optimistic about the bill’s passage, he declined to address questions regarding potential conflicts of interest tied to Trump’s crypto dealings.
The road to final approval could still face hurdles. A late amendment by Sen. Josh Hawley, aimed at capping credit card late fees, is drawing pushback from banking industry groups and may complicate the bill’s timeline.
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