Crypto czar: GENIUS Act could bring billions into the US Treasury

The GENIUS Act, the US bill to regulate stablecoins, could cue billions of dollars toward the US Treasury.

The GENIUS Act, the US bill to regulate stablecoins, could cue billions of dollars toward the US Treasury. That view comes from David Sacks, the White House adviser on crypto policy, who’s also known as the ‘crypto czar.’

“We already have more than $200 billion in stablecoins in circulation; they just aren’t regulated yet,” Sacks said on CNBC’s Closing Bell Overtime. “If we give this legal clarity and a statutory framework, we can, in my view, create a trillion-dollar demand for U.S. Treasuries basically overnight.”

The GENIUS Act (short for Guiding and Establishing National Innovation for US Stablecoins) is designed to provide a legal framework for stablecoins. A core point is that these digital tokens must be fully backed by ‘hard assets’ like government bonds.

Timing isn’t accidental: the stablecoin market is growing at a blistering pace. According to a recent Deutsche Bank report, the volume of stablecoin transactions last year reached a record $28 trillion. That’s more than Mastercard and Visa’s combined annual revenue.

According to Sacks, rising demand for U.S. Treasuries could not only push rates lower but also strengthen the dollar’s global position. “Stablecoins offer a new, more efficient and cheaper payments system – a modern alternative to today’s infrastructure,” he said. “And they reinforce dollar dominance.”

The GENIUS Act is nearing the end of the legislative process. The final Senate vote is about to take place.