During an interview on CNBC’s Closing Bell Overtime late Wednesday, the passage of the GENIUS Act stablecoin bill was anticipated by White House crypto czar David Sacks, with expectations that it could result in trillions of dollars being directed toward U.S. Treasury demand.
When questioned about the timeline for stablecoins to begin boosting demand for the U.S. dollar, Sacks responded that the effect would be immediate. He noted that while more than $200 billion in stablecoins already exist, they currently operate without regulation. According to him, establishing a clear legal framework could rapidly generate trillions of dollars in demand for U.S. Treasury securities.
Stablecoin issuer Tether has already demonstrated considerable demand, even before the bill’s passage. According to U.S. Department of Treasury statistics, the company has accumulated nearly $120 billion in U.S. Treasury securities, ranking it ahead of Germany as the world’s 19th largest holder.
Sacks echoed Bitwise Chief Investment Officer Matt Hougan’s Tuesday remarks, in which Hougan suggested that the proposed legislation could set the stage for a prolonged crypto bull cycle.
Broad Support for Stablecoin Bill Amid Scrutiny of Trump’s Crypto Links
The GENIUS Act mandates full collateralization of stablecoins with U.S. Treasurys or equivalent dollar-denominated assets. It enforces anti-money laundering regulations, introduces oversight for foreign issuers, and requires major issuers—those with market capitalizations exceeding $50 billion, such as Tether and Circle—to register and undergo regular audits.
The Senate advanced the bill on Monday with a 66-32 vote, gaining support from several Democrats who had opposed it the previous week. Crypto advocates and lawmakers praised the vote as a “historic” milestone that could help preserve the U.S. dollar’s dominance. Lawmakers must still review and approve any proposed amendments before holding a final vote on the legislation.
However, the legislation has drawn criticism from certain quarters, with concerns raised that it might serve as a covert path toward the establishment of a central bank digital currency. Democratic Senator Elizabeth Warren voiced disapproval, arguing that the bill fails to address the Trump family’s ties to World Liberty Financial’s USD1 stablecoin. Additionally, Democratic Senator Richard Blumenthal claimed last week that the DeFi project associated with Trump could potentially enable foreign entities to financially benefit and exert influence over the president.
Sacks did not directly address the concerns—mostly raised by Democrats—about the legislation lacking sufficient protections to prevent President Trump and his family from profiting. Instead, he highlighted the broad bipartisan backing for the bill. “I believe 15 Democrats supported the measure to clear the critical cloture hurdle, which effectively ensures the bill will not face a filibuster,” he stated.
It was further expressed by Sacks that full passage of the bill is now anticipated. According to him, the legislation is likely to succeed due to the advantages stablecoins provide, including a more cost-effective, streamlined, and efficient payment infrastructure. Additionally, he noted that stablecoins help reinforce the dominance of the U.S. dollar in the digital sphere. For these combined reasons, Sacks stated that the stablecoin legislation is expected to move forward with strong bipartisan approval.
Sacks concluded the interview—while also serving as the overseer of artificial intelligence policy—by emphasizing the administration’s commitment to supporting the infrastructure, energy resources, and innovation required to lead in the AI sector. He warned that neglecting these priorities would severely impact the nation’s economy and military strength. He expressed confidence that the U.S. would take the necessary steps to win this critical technological race.
