Key Takeaways
- David Sacks says the GENIUS Act might unlock trillions in Treasury demand.
- The invoice handed a key Senate vote with bipartisan assist from 15 Democrats.
- Ethics issues persist over Trump household ties to a brand new stablecoin, USD1.
White Home crypto advisor David Sacks mentioned the administration expects the GENIUS Act — a key stablecoin regulation invoice — to cross the Senate with bipartisan assist, claiming it might unlock trillions in demand for U.S. Treasuries.
Sacks instructed CNBC:
We have already got over $200 billion in stablecoins — it’s simply unregulated. If we offer the authorized readability and authorized framework for this, I believe we might create trillions of {dollars} of demand for our Treasuries virtually in a single day.
Legislative progress & moral issues
The invoice cleared a procedural vote this week with 15 Democrats crossing the aisle to assist it, breaking the filibuster threshold.
Whereas Sacks expressed confidence in passage, he prevented addressing ethics issues raised by Democrats over President Trump’s private ties to crypto.
Trump household & stablecoin investments
The Trump household is financially backing World Liberty Monetary, which launched its personal stablecoin, USD1, backed by Treasuries and greenback deposits.
A $2 billion funding from Abu Dhabi’s MGX fund into USD1, by way of Binance, marks the most important crypto funding for the trade.
Challenges & market dynamics
Regardless of the momentum, the invoice faces hurdles. Senator Josh Hawley added a controversial bank card late charge cap to the laws — a transfer that would jeopardize assist from banking allies.
Progress in stablecoin utilization
Stablecoin utilization continues to develop, with Deutsche Financial institution reporting $28 trillion in transactions final 12 months — greater than Visa and Mastercard mixed.
Tether, the market chief, holds over 60% share, banked within the U.S. by Cantor Fitzgerald.