GENIUS Act Could Release Trillions for US Treasury, Suggests Crypto Expert David Sacks
Crypto leader David Sacks recently underscored the possible advantages of the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act), claiming that definitive regulatory frameworks for stablecoins could potentially instigate a spike in demand for US treasuries.
In an interview with CNBC on May 21, 2025, Sacks mentioned that despite the lack of compliance, there are already $200 billion in stablecoins, and that introducing regulatory clarity and a suitable framework could generate “trillions of dollars in buyer interest for our Treasuries almost overnight, very swiftly.”
This week, the GENIUS Act reached a significant milestone, passing the Senate with 66 votes, which included the base level of 15 Democrats for its advancement. Sacks expressed optimism that the administration anticipates the bill’s passage and portrayed it as an economic opportunity, stressing the potential of stablecoins to develop a “new, more efficient, cheaper, smoother payment system — new payment infrastructure for the US economy.”
Crypto Leader David Sacks on the GENIUS Act and how stablecoins like $USDC will aid the US economy & bring trillions to the US Treasury: “We already have over $200B in stablecoins; it’s just unregulated.” “We could create trillions in market demand.” $RLUSD $USDT pic.twitter.com/sgC5oOHN6w
— ALLINCRYPTO (@RealAllinCrypto) May 22, 2025
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Stablecoin Regulation via the GENIUS Act
The GENIUS Act is a bipartisan proposal aimed at regulating stablecoins, requiring issuers to long-term holding reserves in secure and liquid assets like treasury bills, adhere to anti-money laundering and counter-terrorism financing laws, and prioritize holders in bankruptcy scenarios.
The act forbids the offering of yield-generating products, and depending on the scale of issuance, issuers must operate under the oversight of federal authorities or federally qualified state regulators.
Moreover, the bill addresses potential conflicts of interest. Amendments have been introduced to prevent non-financial public companies, including major tech firms, from issuing stablecoins unless they obtain user consent. Additionally, the GENIUS Act bars executive branch members, excluding the president and vice president, from issuing stablecoins.
Critics have notably expressed concerns regarding Trump’s family’s connection to World Liberty Financial, which has recently launched the USD1 stablecoin linked to the US dollar. Remarkably, this stablecoin has garnered notable investments, including a $2 billion investment from Abu Dhabi’s MGX fund via Binance.
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Reintroduction of the Blockchain Regulatory Certainty Act
As discussions on the GENIUS Act progress, House lawmakers have reintroduced a distinct measure aimed at improving regulatory clarity for developers. Representatives Tom Emmer and Richie Torres have refiled the Distributed ledger Regulatory Certainty Act to protect software developers and distributed database service providers that do not possess customer assets.
This legislation seeks to ensure that developers and network node operators are not categorised as money transmitters, financial institutions, or other regulated intermediaries solely based on their development or maintenance of distributed database software.
The act defines a blockchain developer as any entity that creates or maintains software for decentralised networks and specifies “control” as the legal capacity to independently access and transact with digital assets without third-party involvement.
Additionally, the bill clarifies that developers and service providers are exempt from licensing requirements at the state or federal level unless they have control over their users’ digital assets.
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Key Takeaways
- The GENIUS Act prohibits yield-bearing products, mandating issuers to operate under oversight from federal or certified state regulators depending on the issuance scale.
- Sacks believes that a solid framework could lead to trillions in market demand for U.S. Treasuries almost instantaneously.
- Lawmakers have reintroduced the Distributed ledger Regulatory Certainty Act to protect developers and service providers not holding customer assets.
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