The push for stablecoin regulation in the United States has gained significant momentum, with the Senate’s GENIUS Act clearing a critical procedural hurdle, signaling robust bipartisan support. David Sacks, President Donald Trump’s top advisor on cryptocurrency and artificial intelligence, emphasized the transformative potential of this legislation during an interview on CNBC’s “Closing Bell Overtime.” Sacks highlighted that the bill, which regulates stablecoins – cryptocurrencies pegged to real-world assets like the U.S. dollar – could unlock substantial economic benefits, including driving trillions of dollars in demand for U.S. Treasuries. He noted that over $200 billion in stablecoins already circulate in an unregulated market, and a clear legal framework could catalyze rapid growth in this sector.

Stablecoins, unlike volatile digital assets such as Bitcoin (BTC), which surged to a record high of $109,487.23, offer stability by maintaining a fixed value, making them ideal for transactions and as a store of value. The market’s scale is already immense, with Deutsche Bank (DB) reporting that stablecoin transactions reached $28 trillion last year, outpacing the combined transaction volumes of payment giants Mastercard (MA) and Visa (V). Tether, a dominant player holding over 60% of the stablecoin market and backed by Cantor Fitzgerald in the U.S., exemplifies the sector’s influence. Sacks framed the GENIUS Act as a dual-purpose initiative: it establishes a regulatory structure for stablecoins while reinforcing the U.S. dollar’s global dominance in digital finance. He described stablecoins as “new payment rails for the U.S. economy,” offering a more efficient and cost-effective alternative to traditional financial systems.

The Senate’s recent vote, with 15 Democrats supporting the bill to surpass the cloture threshold, ensures it can avoid a filibuster, paving the way for its anticipated passage. However, concerns persist among some Democrats regarding potential conflicts of interest, given President Trump’s involvement in cryptocurrency ventures, including a personal meme coin and a family-linked stablecoin. These apprehensions, which previously led to the bill’s rejection, center on the lack of sufficient safeguards to prevent the president and his family from profiting from the legislation. Sacks sidestepped these concerns in his remarks, focusing instead on the bill’s economic promise.

The GENIUS Act represents a pivotal moment for U.S. cryptocurrency policy, aligning with broader efforts to integrate digital assets into the financial system. Stablecoins, by facilitating faster and cheaper transactions, could reshape payment infrastructure while bolstering demand for U.S. Treasuries as a backing asset. This legislation positions the U.S. to maintain its financial leadership in an increasingly digital global economy, leveraging the stability of the dollar to anchor the next generation of financial innovation. As the bill moves toward final passage, its implications for both the crypto market and national economic strategy will be closely watched.

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