Crypto czar David Sacks recently highlighted the potential benefits of the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act), asserting that clear regulatory guidelines for stablecoins could potentially trigger a surge in demand for US treasuries.
In an interview with CNBC on 21 May 2025, Sacks stated that although unregulated, there are already $200 billion in stablecoins and that adding regulation clarity and a proper framework to the equation could create “trillions of dollars of demand for our Treasuries practically overnight, very quickly.”
The GENIUS Act achieved a key milestone this week, clearing the Senate with 66 votes, including 15 democrats in favour of advancing the act. Sacks stated that the administration expects the bill to pass and framed the bill as an economic opportunity, emphasising stablecoin’s ability to create a “new, more efficient, cheaper, smoother payment system — new payment rails for the US economy.”
Crypto Czar David Sacks on the GENIUS Act and how stablecoins like $USDC will benefit the US economy & trillions to the US Treasury:“We already have over $200B in stablecoins, its just unregulated.””We could create trillions in demand.” $RLUSD $USDT pic.twitter.com/sgC5oOHN6w
— ALLINCRYPTO (@RealAllinCrypto) May 22, 2025
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Stablecoin Oversight Through the GENIUS Act
Genius Act, a bipartisan bill, aims to regulate stablecoins, mandating stablecoin issuers to maintain reserves in safe and liquid assets such as treasury bills, comply with anti-money laundering and terrorism finance regulations, and prioritise coin holders in bankruptcy proceedings.
The act prohibits offering yield-bearing products, and depending upon the issuance scale, the issuers must function under the purview of the federal authorities or federally certified state regulators.
Furthermore, the bill also addresses concerns regarding potential conflicts of interest. Specific amendments have been made to keep non-financial public companies, including tech giants, from issuing stablecoins unless they receive user consent. Additionally, the GENIUS Act prohibits members of the executive branch, excluding the president and the vice president, from launching stablecoins.
Notably, critics have raised concerns about Trump’s family’s support for World Liberty Financial, which recently introduced the USD1 stablecoin, pegged to the US dollar. Interestingly, the stablecoin has attracted significant investment with Abu Dhabi’s MGX fund investing $2 billion into it via Binance.
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Reintroduction of the Blockchain Regulatory Certainty Act
While deliberations on the GENIUS Act continue, the House lawmakers have reintroduced a separate measure to enhance regulatory clarity for developers. Representatives Tom Emmer and Richie Torres have refiled the Blockchain Regulatory Certainty Act to protect software developers and blockchain service providers that do not hold customer assets.
Through this bill, the lawmakers aim to ensure that developers and node operators are not classified as money transmitters, financial institutions or other regulated intermediaries just because they develop or maintain blockchain software.
This act defines a blockchain developer as an entity that creates or maintains decentralised network software and specifies “control” as the legal ability to independently access and transact with digital assets without a third party.
Additionally, the bill clarifies that developers and service providers are exempt from state or federal licensing requirements unless they have control over their users’ digital assets.
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Key Takeaways
- The GENIUS Act bans yield-bearing products, requiring issuers to operate under federal or certified state regulatory oversight based on issuance scale
- Sacks speculates that a clear framework could generate trillions in U.S. Treasury demand almost instantly
- Lawmakers refiled the Blockchain Regulatory Certainty Act to safeguard developers and service providers without customer asset custody
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