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 US administration is expecting bipartisan support to clear the Senate and pass the stablecoin bill, says David Sacks, President Donald Trump’s top adviser on crypto and artificial intelligence.

Speaking to CNBC on May 21, Sacks said the bill could trigger “trillions of dollars” in demand for US Treasurys by unlocking stablecoin growth.

“We have every expectation now that it’s going to pass. It’s certainly the hope,” he stated.

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.

But it faces an uncertain future after a key procedural vote saw 15 Democrats join Republicans to clear the filibuster threshold.

“It’s a bipartisan vote in the Senate to move forward with the stablecoin legislation, setting up a final vote in the coming weeks,” Sacks noted.

The administration is expecting the bill to clear the Senate with bipartisan backing.

“We have every expectation now that it’s going to pass, and certainly it’s the hope. I think it’s good for the country and good for the economy.”

The bill could trigger “trillions of dollars” in demand for US Treasurys by unlocking stablecoin growth.

“If you look at the numbers, we already have over $200 billion in stablecoins — it’s just that they’re largely unregulated. So if we provide that legal clarity and certainty, I think we’ll create enormous demand for Treasurys practically overnight.”

Stablecoin bill faces backlash over Trump family ties

The stablecoin bill’s progress comes despite controversy surrounding the Trump family’s crypto dealings.

Critics have raised concerns that the administration benefits from the legislation, given its ties to World Liberty Financial, a crypto firm backed by Trump family members.

The firm recently launched a stablecoin, USD1, which 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 on whether the president or his family may financially gain from the bill’s passage.

He added that the legislation is not focused on a specific company or product, despite rumors to the contrary.

“This is really focused on US economic leadership in the global financial system,” he emphasized.

Despite momentum, final passage is not guaranteed. Senator Josh Hawley has added a controversial provision to the bill that would cap credit card late fees.

This move could scuttle the legislation by merging it with a measure to slash the CARD Act’s protections for consumers and, ultimately, bankroll the government through inflation.

The move could also lose the bill support from financial industry allies, rolling up several measures to jam through an omnibus spending bill.

Banks panicking over yield-bearing stablecoins

In a May 21 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.

According to Campbell, the banking lobby is applying pressure on lawmakers to defend their interests and block competition from interest-paying stablecoins.

He explained that banks rely on fractional reserve practices to profit while offering low returns to depositors.

However, stablecoins threaten this model by providing both interest to users and complete capital backing for the tokens.

“The banks fear that if this new technology is fully realized, it could expose and disrupt the existing system,” he stated.

As reported by Cointelegraph, the US Securities and Exchange Commission in February approved the first yield-bearing stablecoin security by Figure Markets.

According to a May 21 report by Pendle, yield-bearing stablecoins have soared to $11 billion in circulation since January 2024, representing 4.5% of the total stablecoin market.