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BTC Pulse 2025-05-22 08:58:21

David Sacks: Stablecoin Regulation Could Unlock Trillions for U.S. Debt

White House’s Crypto Expert Predicts Trillions in Treasury Demand from Stablecoin Clarity The Biden White House is no more, but stablecoins are here to stay. US debt markets could receive a multitrillion-dollar windfall — all thanks to transparent stablecoin regulation, according to David Sacks, the Trump campaign’s top crypto and AI adviser. GENIUS Act Advances in Senate The legislation at the heart of this opportunity is the GENIUS Act — an acronym for Guiding and Establishing National Innovation for U.S. Stablecoins Act. This act would impose a federal regulatory framework on stablecoin issuers and subject them to the oversight of the U.S. The bill cleared a key hurdle this week when 66 senators voted to send it forward, 15 of them Democrats, crossing the filibuster threshold. In an interview with CNBC, Sacks said the administration feels the act will pass. “There are over $200 billion of stablecoins that are unregulated,” Sacks said. “Regulatory clarity could unlock trillions of dollars of demand for our Treasuries virtually overnight.” Trump Ties Raise Eyebrows The enthusiasm isn’t without controversy. Critics point to Trump’s financial ties to the sector. His family is backing World Liberty Financial, the firm behind USD1, a stablecoin backed by U.S. Treasuries and dollar deposits. USD1 recently secured $2 billion from Abu Dhabi’s MGX fund and is listed on Binance — the crypto exchange that pleaded guilty in a $4.3 billion anti-money laundering case. Sacks declined to comment on potential conflict of interest among the Trump family’s crypto venture. Stablecoins as Financial Infrastructure As criticized, Sacks highlighted the GENIUS Act as a path to enhance the financial system. “Stablecoins are a cheaper, smoother, more efficient payment system — a new set of rails for the U.S. economy,” he stated. Final Hurdles Remain Passage of the GENIUS Act is uncertain at the moment. The recent eleventh-hour amendment by Sen. Josh Hawley limiting credit card late fees has infuriated banking groups, causing final passage to be delayed. Still, with bipartisan good faith and Trumpworld backing, stablecoin regulation is closer than ever — and the impact on U.S. debt markets potentially historic.

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