Why US Crypto Czar David Sacks Backs GENIUS Act Stablecoin Bill

President Trump’s crypto advisor David Sacks was in the headlines again recently over his statement about the GENIUS Act stablecoin bill. The bill which was introduced in February this year was aimed at providing regulatory clarity.

Social sentiment around the GENIUS Act Stablecoin bill recently escalated with analysts and key figures chiming in. Among them included David Sacks who recently noted during a CNBC interview that if approved, the bill would pave the way for aggressive U.S treasuries demand.

Sacks’ statement revealed that the U.S was banking heavily on stablecoins. The recent U.S credit downgrade by Moody’s triggered concern among investors and it highlighted escalating pressure for the U.S.

Market data previously revealed that U.S treasuries were becoming less attractive especially after the United States instigated a tariff war. The situation was further exasperated by the recent credit downgrade which negatively impacted investor and creditor sentiment.

How the Bill Could Alleviate Pressure

Sacks noted that stablecoins could potentially manifest trillions of dollars in treasuries demand one the bill becomes law. Such an 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 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 jumped on 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 embracing stablecoins. In addition, it highlighted the budding 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.