Stablecoin regulation could unlock trillions in U.S. Treasury demand, says Trump's crypto advisor

The GENIUS Act clears key Senate vote, pushing stablecoins toward federal legitimacy.

Could the U.S. unlock trillions overnight – all thanks to stablecoins? Well, there’s a headline you didn’t expect this week. But that’s the claim from David Sacks, the White House’s top advisor on crypto and AI under the Trump administration. And if he’s right, America’s debt market might be on the verge of a huge shift.

Speaking on Thursday to CNBC, Sacks said that regulatory clarity for stablecoins could trigger “trillions of dollars of demand for our Treasuries practically overnight, very quickly.”

His statement is a bold forecast backed by the Trump administration’s renewed push for crypto legislation.

Here’s why you need to pay attention.

The GENIUS Act: A Key Senate Vote Passes

The House voted 66-32 to pass the bill, with 15 Democrats joining all 51 Republicans in a move that puts the measure on track for a House vote.

The bill, short for Guiding and Establishing National Innovation for U.S. Stablecoins, would finally give stablecoin issuers a proper federal framework and bring dollar-backed stablecoins under U.S. oversight.

It's also being touted as a way to modernize the U.S. financial system and maintain the dollar's global dominance as other major economies are developing their own digital currencies.

The bill still faces hurdles in the House, where it could be stalled by lawmakers focused on pressing issues like the upcoming debt ceiling showdown or pressing economic concerns.

But if it does pass, it will mark a significant shift in how the U.S. approaches digital assets and could have far-reaching implications for the global financial landscape.

U.S. Treasury Demand Could Soar With Stablecoin Liquidity

Sacks, known for his outspoken views on crypto and AI, framed the bill as a massive economic opportunity – a chance to attract enormous liquidity into Treasuries. Stablecoins, he said, offer “a new, more efficient, cheaper, smoother payment system.”

There’s already over $200 billion in stablecoins circulating, and without clear rules. With regulation, that capital could flow into U.S. Treasuries, potentially changing the outlook of government debt financing.

However, critics are flagging the emerging conflicts of interest as Trump’s family is backing World Liberty Financial, which recently launched USD1, a stablecoin backed by U.S. Treasuries. It also pulled in a $2 billion investment from Abu Dhabi’s MGX fund – channeled through Binance, the same exchange that just admitted to violating U.S. anti-money laundering laws in a $4.3 billion plea deal.

Last-Minute Amendment Stirs Up Credit Card Late Fees Debate

As the House prepares to vote on the bill, Sen. Josh Hawley dropped a last-minute amendment that would cap credit card late fees.

This move could face resistance from the banking industry, which typically charges hefty late payment penalties to cardholders.

The amendment is part of a broader effort by lawmakers to address what they perceive as unfair or exploitative practices by large corporations and financial institutions.

However, this addition might slow down the bill’s progress as it faces an urgent deadline to pass the bill before the House breaks for August recess.

If the bill isn't passed by August, it will likely stall until September, which could impact the broader outlook for the U.S. crypto regulatory landscape.

If the GENIUS Act passes, this won’t just be a win for stablecoins. It could become a turning point in how the U.S. approaches digital dollars, debt markets, and its global economic leverage. It’s not often crypto gets framed as a lever of national strategy – but here we are. And if Sacks is right, this is just the beginning.