Stablecoin Legislation Could Spark Trillions in U.S. Treasury Demand, Says White House Crypto Adviser
David Sacks, the White House's lead advisor on cryptocurrency policy, has expressed strong confidence that a landmark stablecoin regulation bill — known as the GENIUS Act — is on track to pass, potentially reshaping the global financial landscape and reinforcing U.S. dollar dominance.
Speaking during an interview on CNBC’s Closing Bell Overtime, Sacks said the bill could unlock trillions of dollars in demand for U.S. Treasurys "practically overnight." He emphasized the immediate impact of regulatory clarity on an already substantial market. “We already have over $200 billion in stablecoins — it’s just unregulated,” he said. “If we provide a clear legal framework, that demand could multiply rapidly.”
This momentum comes as Tether, the largest stablecoin issuer, has dramatically increased its holdings of U.S. Treasury securities, reportedly approaching $120 billion, making it the 19th-largest holder globally — ahead of Germany, based on U.S. Treasury data.
The GENIUS Act introduces a regulatory structure requiring stablecoins to be fully backed by U.S. Treasurys or dollar equivalents. It includes stringent anti-money laundering provisions, oversight for foreign issuers, and mandatory registration and audits for issuers with market caps above $50 billion — currently affecting only Tether and Circle.
The Senate advanced the bill earlier this week with a 66-32 vote, signaling bipartisan support, including several Democrats who recently changed their positions. This progress has been welcomed by crypto industry leaders and some lawmakers as a "historic" step toward modernizing the digital economy and bolstering U.S. competitiveness.
Yet, the bill hasn’t escaped criticism. Senator Elizabeth Warren and Senator Richard Blumenthal voiced concerns over potential loopholes that could benefit former President Donald Trump and his family, specifically referencing alleged ties to World Liberty Financial’s USD1 stablecoin project. Some have also warned the bill could pave the way for a central bank digital currency (CBDC), despite no such provision in the legislation.
Sacks, while not directly addressing the Trump-related allegations, underscored the broad coalition backing the bill. “I think 15 Democrats voted to overcome the filibuster. That’s a clear sign this legislation isn’t partisan,” he noted. “Stablecoins create a smoother, cheaper, and more efficient payment system. They’re critical to extending the U.S. dollar’s dominance in the digital economy.”
In the final moments of the interview, Sacks, who also leads policy on artificial intelligence, shifted the focus to the U.S. innovation agenda, emphasizing that national success in AI will depend on supporting infrastructure and power capacity. “If we don’t act, the consequences could be severe — not just economically, but militarily,” he warned.