{"id":12326,"date":"2025-05-22T14:22:43","date_gmt":"2025-05-22T12:22:43","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=12326"},"modified":"2025-05-22T14:22:43","modified_gmt":"2025-05-22T12:22:43","slug":"david-sacks-trumps-crypto-authority-predicts-success-for-stablecoin-legislation","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/05\/22\/david-sacks-trumps-crypto-authority-predicts-success-for-stablecoin-legislation\/","title":{"rendered":"“David Sacks, Trump’s Crypto Authority, Predicts Success for Stablecoin Legislation”"},"content":{"rendered":"

<\/p>\n

\n

David Sacks, the leading advisor on cryptocurrency and artificial intelligence to US President Donald Trump, mentioned that the administration anticipates the stablecoin legislation to pass the Senate with support from both parties.<\/p>\n

\u201cWe are fully optimistic now that it\u2019s going to succeed,\u201d Sacks stated<\/a> to CNBC on May 21, after a significant procedural vote that witnessed 15 Democrats aligning with<\/a> Republicans to overcome the filibuster hurdle.<\/p>\n

The Guiding and Establishing National Innovation for US Stablecoins (GENIUS)<\/a> Act marks the most advanced federal initiative thus far to create a legal framework for digital assets tied to the dollar.<\/p>\n

Sacks indicated that the legislation could generate \u201ctrillions of dollars\u201d in demand for US Treasurys by facilitating stablecoin expansion under explicit regulations.<\/p>\n

\u201cWe currently possess over $200 billion in stablecoins \u2014 it remains unregulated,\u201d he remarked. \u201cBy granting legal clarity, we create immense demand for Treasurys almost instantly.\u201d<\/p>\n

Related: <\/strong><\/em>GENIUS Act \u2018legitimizes\u2019 stablecoins for global institutional adoption<\/strong><\/em><\/a><\/p>\n

Stablecoin legislation advances amid Trump controversies<\/h2>\n

The progression of the stablecoin bill occurs despite controversies associated with the Trump family’s<\/a> cryptocurrency transactions. Critics have expressed concerns that the administration could benefit from this legislation due to its connections to World Liberty Financial<\/a>, a cryptocurrency firm supported by members of the Trump family that recently introduced a stablecoin, USD1.<\/p>\n

The US Senate voted 66\u201332 to progress debate on the GENIUS stablecoin bill. Source: <\/em>US Senate<\/em><\/a><\/figcaption><\/figure>\n

The token is supported by US Treasurys and dollar deposits and has secured a $2 billion investment pledge<\/a> from Abu Dhabi\u2019s MGX fund through Binance.<\/p>\n

Sacks, who reported the sale of $200 million<\/a> in cryptocurrency-related assets before joining the White House, refrained from commenting on whether the president or his family might see financial gains from the bill\u2019s approval.<\/p>\n

Despite the momentum, final approval is not assured. Senator Josh Hawley has introduced<\/a> a contentious clause to the bill that would limit credit card late fees, a change that might jeopardize the legislation’s support from allies within the financial industry.<\/p>\n

Related: <\/strong><\/em>Hong Kong passes stablecoin bill, poised to open licensing by year’s end<\/strong><\/em><\/a><\/p>\n

Banks anxious about yield-generating stablecoins<\/h2>\n

In a May 21 post titled \u201cThe Empire Strikes Back,\u201d New York University professor Austin Campbell remarked that the US banking sector is \u201canxious\u201d regarding the emergence<\/a> of yield-generating stablecoins, which pose a threat to their profit structure.<\/p>\n

\"\"
An excerpt from Campbell\u2019s X post. Source: <\/em>Austin Campbell<\/em><\/a><\/figcaption><\/figure>\n

Campbell criticized the banking lobby for urging lawmakers to protect their interests and hinder competition from interest-bearing stablecoins<\/a>.<\/p>\n

He asserted that banks depend on fractional reserve practices for profitability while providing minimal returns to depositors, and are concerned that stablecoins may expose and disrupt that framework.<\/p>\n