David Sacks Says GENIUS Act Will Clear the Senate with Bipartisan Backing

David Sacks, US President Donald Trump's top adviser on crypto and artificial intelligence, said the administration expects the stablecoin bill to clear the Senate

The administration is expecting the Senate to pass the bill with bipartisan support, according to David Sacks, US President Donald Trump’s top adviser for crypto and artificial intelligence.

“We have every expectation now that it’s going to pass,” Sacks said in an interview with CNBC on Monday, following a key procedural vote that saw 15 Democrats join Republicans to clear the filibuster threshold for the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.

The bill is the most advanced federal effort yet to establish a legal framework for dollar-pegged digital assets. According to Sacks, the bill could trigger “trillions of dollars” in demand for US Treasurys by unlocking stablecoin growth under clear rules.

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

The stablecoin bill’s progress comes despite controversy surrounding the Trump family’s crypto dealings. Critics have raised concerns that the administration benefits personally from the legislation, given its ties to World Liberty Financial, a crypto firm backed by Trump family members that recently launched its stablecoin, USD1. The token is backed by US Treasurys and dollar deposits and has received a $2 billion investment commitment from Abu Dhabi’s MGX fund via Binance.

Sacks, who disclosed the sale of $200 million in crypto-related holdings before joining the White House, declined to comment when asked by CNBC whether the president or his family could financially gain from the bill’s passage.

Despite the momentum, final passage is not guaranteed. As reported by Blockworks, Senate Banking Committee Chair Mike Crapo, a Republican, and ranking member Tim Jeffries, a Democrat, reached an agreement to include an amendment by Senator Josh Hawley to the bill during a last-minute session on Monday evening.

Hawley’s provision would cap credit card late fees, a move that could cost the legislation support from financial industry allies.

Banks panicking over yield-bearing stablecoins

In a Monday post titled “The Empire Lobbies Back,” New York University professor Austin Campbell said the US banking industry is “panicking” over the rise of yield-bearing stablecoins, which threaten their profit model.

Campbell criticized the banking lobby for pressuring lawmakers to defend their interests and block competition from interest-paying stablecoins. According to the professor, banks rely on fractional reserve practices to profit while offering low returns to depositors, and fear stablecoins could expose and disrupt that system.

“The lobbyists descended on Capitol Hill to ensure that no new legislation would permit interest-bearing stablecoins,” he wrote. “Their aim was to maintain the existing system, despite its flaws and the potential for innovation.”

As reported by Cointelegraph, the U.S. Securities and Exchange Commission in February approved the first yield-bearing stablecoin security by Figure Markets. According to a May 21 report from Pendle, yield-bearing stablecoins have soared to $11 billion in circulation since January 2024, representing 4.5% of the total stablecoin market.