President Trump's Crypto Advisor David Sacks Explains How the GENIUS Act Could Unlock "Trillions" in Treasuries Demand

President Trump’s crypto advisor David Sacks was in the headlines again recently over his statement about the GENIUS Act stablecoin bill.

President Trump’s crypto advisor David Sacks recently made headlines again over his statement about the GENIUS Act stablecoin bill. The bill which was introduced in February this year was focused on providing regulatory clarity for stablecoins in the U.S.

Recently, there was a surge in chatter on the GENIUS Act Stablecoin bill as analysts and key figures shared their thoughts on the legislation. Among them was David Sacks who noted during a recent CNBC interview that if approved, the bill would pave the way for aggressive U.S treasuries demand.

Sacks’ statement elaborated on how the bill would require issuers to invest in low-risk assets, such as U.S treasury bills, to back their stablecoins.

However, the bill was currently rendering U.S treasuries less attractive due to several factors. Earlier this month, Moody’s downgraded the U.S credit rating from Aaa to Aa1. The move sparked concerns among investors who pointed out that the situation was putting pressure on the U.S to reduce its debt.

The U.S treasuries were also becoming less appealing after the country instigated a tariff war which was slowly pushing creditors away.

How The Bill Could Alleviate Pressure

Sacks added that once the bill becomes law, stablecoins could manifest trillions of dollars in treasuries demand. In turn, this outcome would support the dollar and ease some of the debt pressure experienced recently.

One of the stipulations in the bill was that issuers were required to back their stablecoins with low-risk assets such as U.S treasury bills. A move that would ensure integration into the traditional finance market and potentially enable institutional adoption.

In addition, the bill may allow the U.S government to secure a broader reach across the globe for bond investment. Especially considering the recent tokenization developments pertaining to tokenized treasuries.

We recently highlighted the launch of tokenized treasuries by JPMorgan and Chainlink. Recent reports revealed that tokenized treasuries had already surpassed $7 billion in TVL.

The recent tokenized growth confirmed that the U.S government may be putting itself in a position to benefit from tokenized RWAs. It will thus be full steam ahead if the stablecoin bill is passed into law.

Stablecoin Maintains Steady Growth Into New Highs

The U.S government’s push into tokenized U.S treasuries through stablecoins underscored opportunities for stablecoin issuers. It may be part of the reasons behind the accelerating growth observed recently.

Tether was already one of the most profitable companies in 2024, during which it generated over $13 billion worth of profits. For context, its profitability was right up there with global heavy hitters such as BlackRock. The tokenized treasuries segment could unlock even more revenue-generating opportunities.

Tether and other stablecoin issuers recently ramped up their stablecoin supply pushing past $245 billion. For context, the total stablecoin marketcap gained almost $3 billion in the last 7 days.

Tether’s USDT maintained dominance above 62%. But despite his solid lead, the stablecoin segment continued to grow and not just in the U.S but also beyond American borders.

Brazil’s FX bank Braza Group recently joined the trend with the launch of its new USDB. In addition, the Brazilian banking group selected the XRP ledger as the blockchain to host the new stablecoin.

The move was in line with the ongoing trend where banks across the world have been integrating stablecoins into their offerings. In addition, it highlighted the partnership between Ripple and banks, and in this case the two were brought together by a launch. These developments were confirmation that stablecoins were at the forefront of crypto adoption.