David Sacks says the GENIUS Act is poised to pass with bipartisan support—clearing the way for a stablecoin boom tied to U.S. Treasurys.
In a bold step toward reshaping the digital currency landscape, President Trump’s lead adviser on crypto and AI, David Sacks, announced that the GENIUS Act—a groundbreaking stablecoin bill—is expected to pass the Senate with support from both sides of the aisle.
“We fully expect it to clear the Senate,” Sacks told CNBC on May 21, just after a crucial vote saw 15 Democrats join Republicans to overcome the filibuster hurdle.
The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act is the most significant federal initiative yet to regulate dollar-pegged digital currencies. Sacks believes it could spark a tidal wave of investment into U.S. Treasurys.
“There’s already $200 billion in stablecoins—completely unregulated,” he said. “With legal clarity, we could see trillions in new Treasury demand almost overnight.”
A Win for Stablecoins Amid Trump Family Scrutiny
The bill’s progress comes despite swirling controversy over the Trump family’s crypto ties. Critics argue that the administration could profit from the legislation through links to World Liberty Financial, a crypto firm backed by Trump family members that recently launched its own Treasury-backed stablecoin, USD1.
That token is gaining serious traction—it just locked in a $2 billion investment from Abu Dhabi’s MGX fund via Binance.
Sacks, who sold off $200 million in crypto-related holdings before joining the White House, declined to say whether the Trump family might benefit financially from the bill’s passage.
Still, the bill’s journey isn’t over yet. Senator Josh Hawley has added a controversial amendment that caps credit card late fees—a move that could alienate some of the bill’s financial backers.
Banks on Edge Over Stablecoin Disruption
Meanwhile, traditional banks are getting nervous. NYU professor Austin Campbell posted a viral take titled “The Empire Lobbies Back”, warning that banks are in “panic mode” over the rise of yield-bearing stablecoins, which offer real returns to holders—unlike traditional bank accounts.
Campbell called out banks for relying on fractional reserve lending and lobbying to stifle stablecoin innovation. Yield-bearing stablecoins, he says, threaten to blow up that model.
And the numbers don’t lie: Since January 2024, these high-yield tokens have surged to $11 billion in circulation, now making up 4.5% of the stablecoin market, according to a new report from Pendle.
Earlier this year, the SEC approved the first yield-bearing stablecoin security by Figure Markets—another signal that Washington may be ready to embrace this new financial frontier.