David Sacks, US President Donald Trump’s high adviser on crypto and synthetic intelligence, stated the administration expects the stablecoin invoice to clear the Senate with bipartisan backing.
“We’ve got each expectation now that it’s going to go,” Sacks informed CNBC on Might 21, following a key procedural vote that noticed 15 Democrats be part of Republicans to clear the filibuster threshold.
The Guiding and Establishing Nationwide Innovation for US Stablecoins (GENIUS) Act is essentially the most superior federal effort but to determine a authorized framework for dollar-pegged digital belongings.
Sacks stated the invoice might set off “trillions of {dollars}” in demand for US Treasurys by unlocking stablecoin progress below clear guidelines.
“We have already got over $200 billion in stablecoins — it’s simply unregulated,” he added. “If we offer authorized readability, we create monumental demand for Treasurys virtually in a single day.”
Associated: GENIUS Act ‘legitimizes’ stablecoins for world institutional adoption
Stablecoin invoice strikes ahead regardless of Trump controversy
The stablecoin invoice’s progress comes regardless of controversy surrounding the Trump household’s crypto dealings. Critics have raised considerations that the administration advantages from the laws, given its ties to World Liberty Monetary, a crypto agency backed by Trump relations that just lately launched a stablecoin, USD1.
The token is backed by US Treasurys and greenback deposits and has obtained a $2 billion funding dedication from Abu Dhabi’s MGX fund through Binance.
Sacks, who disclosed the sale of $200 million in crypto-related holdings earlier than becoming a member of the White Home, declined to touch upon whether or not the president or his household might financially achieve from the invoice’s passage.
Regardless of momentum, remaining passage just isn’t assured. Senator Josh Hawley has added a controversial provision to the invoice that might cap bank card late charges, a transfer that might value the laws assist from monetary trade allies.
Associated: Hong Kong passes stablecoin invoice, set to open licensing by year-end
Banks panicking over yield-bearing stablecoins
In a Might 21 put up titled “The Empire Lobbies Again,” New York College professor Austin Campbell stated the US banking trade is “panicking” over the rise of yield-bearing stablecoins, which threaten their revenue mannequin.
Campbell criticized the banking foyer for pressuring lawmakers to defend their pursuits and block competitors from interest-paying stablecoins.
He argued that banks depend on fractional reserve practices to revenue whereas providing low returns to depositors, and concern stablecoins might expose and disrupt that system.
As reported by Cointelegraph, the US Securities and Alternate Fee in February accredited the primary yield-bearing stablecoin safety by Determine Markets.
In response to a Might 21 report from Pendle, yield-bearing stablecoins have soared to $11 billion in circulation since January 2024, representing 4.5% of the full stablecoin market.
Journal: TradFi is constructing Ethereum L2s to tokenize trillions in RWAs: Inside story