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 with bipartisan backing.

The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act is the most advanced federal effort yet to establish a legal framework for dollar-pegged digital assets.

The stablecoin bill in the U.S. Senate has cleared a crucial procedural vote with bipartisan support, paving the way for a potential vote on the legislation as early as next week.

The bill, which aims to create a legal framework for dollar-pegged digital assets in the U.S., has been pending in the Senate for several months. It’s now one step closer to reaching President Donald Trump’s desk.

The vote on Monday saw 15 Democrats join all 45 Republicans present to clear the 60-vote filibuster threshold needed to advance the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.

The bill was introduced in December 2023 by Sen. Cynthia Lummis (R-WY) and Sen. Kirsten Gillibrand (D-NY) and has bipartisan support.

The legislation proposes granting stablecoin issuers a national charter and requiring them to maintain full reserves backed by U.S. Treasurys, cash and other highly liquid assets. It also designates the Treasury Department to be the primary regulator for stablecoins.

Stablecoin bill may boost U.S. Treasury demand

The legislation’s progress comes amid controversy surrounding the Trump family’s crypto dealings, which some critics have said may be a factor in the administration’s push for the stablecoin bill.

Trump’s son, Eric Trump, and members of his family trust hold investments in World Liberty Financial, a crypto firm that recently launched its own stablecoin, USD1, backed by U.S. Treasurys and dollar deposits. The token has received a $2 billion investment commitment from Abu Dhabi’s MGX fund via Binance.

The administration expects the bill to pass the Senate with bipartisan backing, according to David Sacks, the president’s top adviser on crypto and artificial intelligence.

“We have every expectation now that it’s going to pass,” Sacks told CNBC on Monday.

He added that the bill could trigger “trillions of dollars” in demand for U.S. Treasurries by unlocking stablecoin growth under clear rules.

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

The administration is hopeful that the bill will attract support from both parties, considering the broad implications for the financial industry and the broader economy.

However, the bill’s final passage is not guaranteed yet.

Sen. Josh Hawley (R-MO) has added an amendment to the legislation that would cap credit card late fees, a move that could backfire and cause the bill to lose support from financial industry allies.

Hawley’s amendment, which was approved by the Senate on Tuesday, drew criticism from consumer groups who argue that it could ultimately harm consumers.

Banks 'panicking' over yield-bearing stablecoins

In a May 21 post titled “The Empire Lobbies Back,” New York University professor Austin Campbell said the U.S. banking industry is “panicking” over the rise of yield-bearing stablecoins, which threaten their profit model.

According to Campbell, the banking lobby is pressuring lawmakers to defend its interests and block competition from interest-paying stablecoins.

Banks rely on fractional reserve practices to generate profit while offering low returns to depositors, but stablecoins may disrupt that system by offering better yields on deposits in a decentralized manner, he added.

As previously 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, which represents 4.5% of the total stablecoin market.