President Trump's Crypto Advisor Promises New GENIUS Act Will Unleash "Trillions of Dollars" in US 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 United States.

Its aim was to create a framework for stablecoin issuers to operate within while also ensuring that these coins were fully backed by safe and liquid assets.

Recently, there was a surge in interest in the GENIUS Act Stablecoin bill as analysts and key figures shared their thoughts on the bill and its implications.

Among them was David Sacks who made an interesting observation during a recent CNBC interview.

If approved, the bill could propel the U.S to an "unbelievable" level of treasuries demand which would in turn support the dollar and help alleviate some of the debt pressure that the U.S had been facing.

Sacks’ statement highlighted the U.S government’s strong reliance on stablecoins to reduce its debt.

Recently, Moody’s downgraded the U.S credit rating which sparked concerns among investors and creditors.

It also brought attention to the increasing pressure on the U.S as it juggles its debt with less-attractive treasuries.

After the United States began a tariff war which sparked trade tensions, investors began pulling back on U.S treasuries rendering them less appealing.

The situation was exacerbated when Moody’s downgraded the U.S credit rating from Aaa to Aa1. This had a negative impact on investor and creditor sentiment, leading to heightened scrutiny of the U.S. government’s ability to manage its finances.

How The Bill Could Alleviate Pressure

According to Sacks, the good news was that the bipartisan bill could still be approved by the end of the year.

If approved, the bill could manifest trillions of dollars in treasuries demand as institutions flowed into the U.S. stablecoin market.

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.

This move would ensure the integration of stablecoins into the traditional finance market, potentially facilitating broader institutional adoption.

The bill may also 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.

Recently, we highlighted the launch of tokenized treasuries through a collaboration between 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 its 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.

It also highlighted the burgeoning partnership between Ripple and banks, and in this case, the two were brought together by a launch. These developments were a testament to the pivotal role that stablecoins are playing in the broader adoption of cryptocurrency.