Trump Administration’s Crypto Czar David Sacks Promotes Stablecoin Legislation as Economic Catalyst

Published: May 21, 2025
By: MacKenzie Sigalos, CNBC

In a recent announcement, David Sacks, a prominent adviser under President Donald Trump focusing on cryptocurrencies and artificial intelligence, expressed optimism regarding the potential impacts of the GENIUS Act, a bill designed to regulate stablecoins. According to Sacks, this legislation could lead to significant economic benefits for the U.S. Treasury, potentially unlocking trillions of dollars in demand for government securities.

Stablecoin Legislation Gains Momentum

During an interview on CNBC’s "Closing Bell Overtime," Sacks stated that stablecoin legislation, which aims to create a regulated framework for these digital assets, is expected to gain strong bipartisan support in the Senate. Currently, over $200 billion in stablecoins exist without regulation, suggesting a substantial untapped market for U.S. Treasuries, he noted. "If we provide the legal clarity and legal framework for this, I think we could create trillions of dollars of demand for our Treasuries practically overnight,” Sacks stated.

The GENIUS Act recently overcame a crucial procedural vote in the Senate, with 15 Democrats joining their Republican counterparts to break the filibuster threshold. "We have every expectation now that it’s going to pass," Sacks commented, although he acknowledged existing concerns regarding potential conflicts of interest due to President Trump and his family’s involvement in cryptocurrency ventures.

The Stakes of the GENIUS Act

Unlike traditional cryptocurrencies like Bitcoin, which are known for their price volatility, stablecoins are pegged to real-world assets, such as the U.S. dollar. Notably, Tether, a market leader in the stablecoin space, dominates over 60% of the market. Deutsche Bank reported that stablecoin transactions reached an astonishing $28 trillion last year, surpassing the combined transactions of major credit card companies Mastercard and Visa.

Sacks has positioned the GENIUS Act not solely as a regulatory measure for cryptocurrencies but as a strategic initiative for the U.S. economy. He emphasized that stablecoins could usher in a more efficient payment system, providing "new payment rails for the U.S. economy" and enhancing the presence of the dollar in digital transactions.

Ethical Concerns and Legislative Challenges

Despite the anticipated momentum for the bill, the administration is navigating ethical concerns related to President Trump’s personal financial interests in the crypto sector. Critics have pointed to the president’s investments in cryptocurrency, including his own meme coin and a stablecoin linked to his family’s ventures, as sources of potential conflict. These concerns contributed to previous hesitations among Democrats, who worry about the adequacy of safeguards against such conflicts.

While Sacks disclosed selling $200 million in crypto holdings prior to his role in the White House, the Trump family’s increasing investment in the crypto space raises eyebrows. Recently, the Trumps backed the launch of a new stablecoin called USD1, supported by Treasuries and dollar deposits, demonstrating their commitment to expanding their financial footprint in the digital currency sector.

Additionally, Senator Josh Hawley (R-MO) has added a divisive clause to the GENIUS Act aimed at capping credit card late fees, a change that critics claim might complicate bipartisan support and delay the bill’s passage.

Conclusion

As the Senate prepares for further discussions on the GENIUS Act, the future of this stablecoin legislation remains uncertain. While it presents a promising opportunity to bolster the U.S. Treasury’s standing and create a more structured digital currency market, the ethical implications of vested interests and the political landscape pose notable challenges ahead.

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