Trump’s crypto czar David Sacks says stablecoin bill could create trillions of dollars in demand for US Treasurys

In an interview on CNBC's Closing Bell Overtime late Wednesday, White House crypto czar David Sacks said he expects the GENIUS Act stablecoin bill to pass, potentially unlocking trillions of dollars for the U.S. Treasury.

Asked how soon stablecoins could start driving dollar demand, "I think it'll be immediate," Sacks said. "We already have over $200 billion in stablecoins — it's just unregulated. I think that if we provide the legal clarity and legal framework for this, we could create trillions of dollars of demand for our Treasurys practically overnight, very quickly."

Even ahead of the bill, stablecoin issuer Tether has demonstrated considerable demand, recently nearing $120 billion in U.S. Treasury securities, surpassing Germany as the 19th largest global holder, according to U.S. Department of Treasury statistics .

Sacks' remarks echo Bitwise Chief Investment Officer Matt Hougan, who said on Tuesday that the legislation could pave the way for a multi-year crypto bull run , projecting stablecoins would grow into a $2.5 trillion market "in no time."

Bipartisan support despite concerns over Trump's crypto ties

The GENIUS Act would require stablecoins to be fully backed by U.S. Treasurys or dollar equivalents, impose AML rules, add oversight for foreign issuers, and mandate registration and audits for large issuers with market caps exceeding $50 billion — currently just Tether and Circle.

Senators voted 66-32 on Monday to advance the bill, including several Democrats who flipped from opposing it last week. Crypto leaders and lawmakers hailed the vote as a "historic" win that could help "ensure U.S. dollar dominance," though lawmakers must still approve any potential amendments before holding a final vote on the bill.

However, not everyone is happy about the legislation, with some warning that it could create a backdoor toward a central bank digital currency. Democratic Sen. Elizabeth Warren also criticized the bill for overlooking the Trump family's connections to World Liberty Financial's USD1 stablecoin. Last week, Democratic Sen. Richard Blumenthal also alleged that the Trump-linked DeFi project could allow foreign governments and others to enrich and compromise the president.

Sacks did not directly respond to those concerns, predominantly on the Democrat side of the aisle, that there aren't enough safeguards to keep President Trump and his family from benefitting from the legislation, instead emphasizing the bill's bipartisan support. "I think 15 Democrats voted for the bill to pass this key procedural threshold of cloture, which means there'll be no filibuster against the bill," he said,

"We have every expectation now that it's going to pass," Sacks added. "I think the reason it's going to pass is because stablecoins offer a more efficient, cheaper, smoother payment system, new payment rails for the U.S. economy. It also extends the dominance of the dollar online. I think for all these reasons, the stablecoin bill is going to pass, and it's going to pass with significant bipartisan support."

Sacks, whose remit also covers artificial intelligence policy, closed the interview by emphasizing that the U.S. administration would help support the infrastructure, power capacity, and innovation required to win the AI race. "If we don't, it'll be very bad for our economy. It'll be very bad for our military, so I think we're going to do what's necessary to win this race," he said.