GENIUS Act Clears Senate Hurdle, Could Fuel Trillions in Treasury Demand

President Donald Trump’s chief advisor on crypto and AI, David Sacks, said Wednesday that the administration is confident stablecoin legislation advancing in the Senate will pass with “significant bipartisan support,” and argued it could boost demand for U.S. Treasuries.

“We already have over $200 billion in stablecoins — it’s just unregulated,” Sacks said during an appearance on CNBC’s “Closing Bell Overtime.” “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, very quickly.”

The legislation, known as the GENIUS Act, aims to establish a regulatory framework for stablecoins. It cleared a critical Senate procedural hurdle this week, with 15 Democrats crossing the aisle to support the bill, giving it enough momentum to overcome a filibuster.

“We have every expectation now that it’s going to pass,” Sacks added. However, he declined to address concerns from Democrats over potential conflicts of interest related to President Trump and his family. Some lawmakers previously opposed the bill, citing the president’s involvement in cryptocurrency ventures — including a personal meme coin and a stablecoin linked to the Trump family’s crypto business — as a source of ethical concern.

Unlike volatile cryptocurrencies like bitcoin, stablecoins are digital tokens tied to traditional assets, typically the U.S. dollar. Bitcoin, meanwhile, surged to near $110,000 on Wednesday.

Tether, the dominant player in the market, is banked in the U.S. by Cantor Fitzgerald and holds over 60% market share. A report by Deutsche Bank found that stablecoin transaction volume reached $28 trillion last year, surpassing the combined volume of Mastercard and Visa.

Sacks, a growing influence in Trump’s policy circle, positioned the GENIUS Act as more than a crypto initiative — calling it a key pillar of the U.S. economic strategy.

“Stablecoins offer a new, more efficient, cheaper, smoother payment system — new payment rails for the U.S. economy,” he said. “It also extends the dominance of the dollar online.”

The White House has thrown its weight behind the legislation despite lingering concerns about Trump’s ties to the sector.

Although Sacks disclosed that he liquidated $200 million in crypto-related assets before taking his White House role, the Trump family has continued to expand its presence in the industry.

They are reportedly backing World Liberty Financial, the firm behind USD1 — a new stablecoin pegged to the U.S. dollar and backed by Treasury securities and cash reserves.

In a major show of support, Abu Dhabi’s MGX investment fund committed $2 billion in USD1 to Binance, the world’s leading crypto exchange — marking MGX’s largest crypto investment to date.

However, the bill’s path to final passage may not be without obstacles. Senator Josh Hawley (R-Mo.) recently introduced a controversial amendment capping credit card late fees, a move viewed as a “poison pill” that could jeopardize support from financial institutions.