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.
Considerable demand has already been demonstrated by stablecoin issuer Tether, even prior to the bill’s passage. According to statistics from the U.S. Department of Treasury, nearly $120 billion in U.S. Treasury securities has been accumulated by the company—placing it ahead of Germany as the 19th largest holder globally.
Sacks’ comments were aligned with those made by Bitwise Chief Investment Officer Matt Hougan, who suggested on Tuesday that the proposed legislation might set the stage for an extended crypto bull cycle. Hougan projected that the stablecoin market could rapidly expand to $2.5 trillion.
Broad Support for Stablecoin Bill Amid Scrutiny of Trump’s Crypto Links
The GENIUS Act would mandate that stablecoins be entirely collateralized by U.S. Treasurys or equivalent dollar-denominated assets. Anti-money laundering regulations would be enforced, oversight would be introduced for foreign issuers, and registration along with regular audits would be required for major issuers holding market capitalizations above $50 billion — a threshold currently met only by Tether and Circle.
The bill was advanced on Monday by a 66-32 Senate vote, with support from several Democrats who had previously opposed it the week before. The vote was praised by crypto advocates and legislators as a “historic” milestone that may contribute to maintaining the dominance of the U.S. dollar. However, any proposed amendments must still be reviewed and approved by lawmakers before a final vote on the legislation can take place.
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.
Those concerns—mostly voiced by Democrats—regarding insufficient protections to prevent President Trump and his family from profiting through the legislation were not addressed directly by Sacks. 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.
The interview was concluded by Sacks—who also oversees artificial intelligence policy—by highlighting the administration’s commitment to supporting the infrastructure, energy resources, and technological innovation needed to secure leadership in the AI sector. It was stated by him that failing to do so would severely impact both the nation’s economy and military strength. Confidence was expressed that the necessary steps would be taken to ensure victory in this critical technological race.
