Trump’s Crypto Adviser: Stablecoin Bill Will Pass Senate

Trump’s Crypto Adviser Says Stablecoin Bill Will Pass, Unlocking Trillions in Treasury Demand

David Sacks, President Trump’s senior adviser on crypto and AI, has voiced confidence that the long-awaited stablecoin bill — the GENIUS Act — will pass the U.S. Senate with bipartisan support, potentially reshaping the digital dollar landscape.

Speaking to CNBC on May 21, Sacks said, “We have every expectation now that it’s going to pass,” referring to the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. A recent procedural vote saw 15 Democrats join Republicans to move the bill forward, clearing the filibuster threshold.

Trillions in Demand for U.S. Treasurys

Sacks emphasized that clear legal frameworks for stablecoins could unlock “trillions of dollars” in demand for U.S. Treasurys, as regulated dollar-pegged digital assets become widely adopted.

“We already have over $200 billion in stablecoins — it’s just unregulated,” Sacks said. “If we provide legal clarity, we create enormous demand for Treasurys practically overnight.”

The GENIUS Act aims to bring oversight and legitimacy to the rapidly growing stablecoin market, which is currently operating in a fragmented regulatory environment.

The US Senate voted 66–32 to advance debate on the GENIUS stablecoin bill. Source: US Senate

Trump Ties Draw Scrutiny

The bill’s momentum comes amid controversy surrounding the Trump family’s crypto ties. Critics have raised concerns about World Liberty Financial, a crypto firm backed by Trump family members, which recently launched a stablecoin called USD1, backed by U.S. Treasurys and dollar deposits.

The token reportedly secured a $2 billion investment commitment from Abu Dhabi’s MGX fund via Binance, drawing questions about potential conflicts of interest.

Sacks, who disclosed the sale of $200 million in crypto-related holdings before joining the administration, declined to comment on whether the Trump family may personally benefit from the bill’s passage.

Final Passage Still Uncertain

While the bill has gained momentum, final approval is not guaranteed. A last-minute provision from Senator Josh Hawley, seeking to cap credit card late fees, has stirred opposition from the financial sector and could endanger broader support.

As stablecoins gain ground, traditional banks are raising alarms over the emergence of yield-bearing stablecoins, which offer competitive returns and could erode bank deposit bases.

An excerpt of Campbell’s X post. Source: Austin Campbell

In a post titled “The Empire Lobbies Back,” NYU professor Austin Campbell criticized the banking lobby for trying to stifle innovation to protect outdated profit models. He argued that banks depend on fractional reserve practices and fear that interest-paying stablecoins could expose their inefficiencies.

According to Pendle, yield-bearing stablecoins now account for $11 billion, or 4.5% of the total stablecoin market, a surge driven in part by the SEC’s approval of the first yield-bearing stablecoin security by Figure Markets in February.

As the GENIUS Act moves toward a Senate vote, the debate underscores a larger battle between traditional finance and the rapidly evolving crypto economy.