David Sacks, President Trump’s chief adviser on crypto and artificial intelligence, told CNBC that the Senate will likely approve the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.
The bill, aimed at creating a federal framework for dollar-pegged digital assets, cleared a crucial procedural vote after 15 Democrats joined Republicans to meet the threshold needed to advance the measure.
Bipartisan Backing and Sceptical Voices
The GENIUS Act has drawn support from both parties, but not without reservations. While Sacks expressed confidence that the bill would pass, some Democrats worry there are not enough guardrails to prevent conflicts of interest.
Critics pointed out that President Trump and his family have their cryptocurrency ventures, including a meme coin and a proposed stablecoin. These ties raised questions about whether the president or his relatives could personally benefit from the legislation.
However, the White House has publicly endorsed the measure, framing it as a way to boost innovation and strengthen the dollar’s role online.
Stablecoins as an Economic Tool
Stablecoins differ from volatile cryptocurrencies like Bitcoin because they peg their value to an asset such as the U.S. dollar. At present, more than $200 billion in stablecoins circulate without clear federal rules.
Sacks argued that providing legal clarity would unlock massive growth. He said on May 21 that, under a regulated environment, stablecoins could create new, more efficient, and cheaper payment routes for the U.S. economy.
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By establishing clear rules, the bill aims to foster confidence in digital payments, encouraging broader use among businesses and consumers.
Boosting Demand for U.S. Treasuries
According to Sacks, the GENIUS Act could spark “trillions of dollars” of demand for U.S. Treasuries. He explained that stablecoins must be backed by real dollars or dollar-equivalent assets held in reserve.
As more issuers launch regulated stablecoins, they would need to hold substantial amounts of Treasuries to ensure every digital token matches the dollar value it represents.
This requirement could drive a sudden surge in treasury purchases, strengthening demand for government debt instruments almost overnight. As a result, the bill not only addresses digital payments but also supports U.S. financial markets by funnelling additional investment into safe assets.
Potential Roadblocks Remain
Despite the progress, the final passage of the GENIUS Act is not guaranteed. Senator Josh Hawley recently added a provision to cap credit card late fees.
While this change aims to protect consumers, it may put off some financial industry supporters who worry about added regulations. If enough senators oppose the fee cap, the bill could lose critical support and fail to advance.
Moreover, lawmakers must still negotiate details about consumer safeguards, compliance standards, and oversight mechanisms to ensure stablecoin issuers remain transparent and accountable.
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