Sacks Says New Bill Allows Stablecoins To Soak Up Trillions—But Trump Ties Cloud The Push

A stablecoin bill sprinting toward the legislative goal line could unleash trillions in global demand for U.S. Treasuries and cement the dollar's dominance in digital finance—at least if White House crypto adviser David Sacks gets his wish. But with President Donald Trump's family-linked crypto ventures casting a long political shadow, critics warn the future of fintech might come with a built-in conflict of interest.

What Happened: Speaking to Bloomberg on Thursday, Sacks said the legislation, if signed into law by the House of Representatives, would provide the regulatory clarity needed to expand stablecoin issuance and institutional adoption.

The bet is that it will ultimately boost global use of U.S. dollar-based digital assets.

"There's already something like $250 billion in float of stablecoins… without there being a true regulatory framework in the United States," Sacks said. "I think you could see other economies start to dollarize from the bottom up… and that would create potentially trillions of dollars of new demand for U.S. Treasuries."

Sacks added that the bill would not only standardize audits and reserves for issuers but could also accelerate private sector involvement.

"I think you'd see traditional financial players getting involved in it," he noted. "This would increase confidence in the industry."

He emphasized that the bill would move major stablecoin activity onshore and into a regulated framework.

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Why It Matters: The bill faces opposition from most Democrats due to Trump's lucrative cryptocurrency ventures. World Liberty Financial, a firm his family runs, earned the president over $57 million last year. The firm also plans to launch a stablecoin called USD1.

Critics warn of a deepening conflict of interest as Trump's administration simultaneously rolls back crypto regulations while his financial ties to the sector grow.

The GENIUS Act “contains no restrictions to bar elected officials and their families from owning, buying, selling, or otherwise participating in stablecoin business ventures or prevent foreign countries from currying favor with President Trump by using his stablecoin to funnel money to him,” according to a letter published in May from the Senate Committee on Banking, Housing, and Urban Affairs.

In contrast, the bill’s supporters stress that the legislation strengthens consumer protections. If it passes, stablecoin issuers must maintain one-to-one reserves in U.S. bank accounts and undergo quarterly audits.

When asked about speculation about pairing the bill with broader market structure legislation, Sacks warned that combining the two could delay progress.

"The stablecoin bill is on the 10-yard line… the market structure bill hasn't even been taken up by the Senate," he said.

Sacks also pointed to the evolution of blockchain-based payments as a pivotal development enabled by the legislation.

"Stablecoins will be used as payments… it's a payment system of the future," he said, calling it a faster and more efficient alternative to legacy systems.

He linked the legislative push to broader U.S. goals of maintaining competitiveness in financial innovation. "We don't want this innovation being driven offshore," he said. "The leading stablecoin issuer is offshore right now."

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