David Sacks, President Donald Trump’s top crypto and AI advisor, has made bold claims about the financial potential of the GENIUS Act — a new piece of legislation designed to regulate stablecoins in the United States. In a recent interview with CNBC, Sacks asserted that the bill could “unlock trillions of dollars” in demand for U.S. Treasuries if passed into law. Backed by strong bipartisan momentum, the bill recently cleared a key procedural hurdle in the Senate, with 15 Democrats joining Republicans to move the legislation forward and avoid a filibuster.

The GENIUS Act represents a significant pivot in Washington’s stance toward cryptocurrency regulation. While more than $200 billion in stablecoins already circulate globally, the market remains largely unregulated in the U.S. Sacks contends that formalising a legal framework would not only solidify the dollar’s dominance in the digital sphere but also create a stable, treasury-backed system that could boost economic security.

Economic Promise or Political Minefield?

Despite the economic upside, the bill faces political headwinds. Democrats have raised red flags over potential conflicts of interest tied to Trump and his family’s cryptocurrency ventures. The former president has actively supported various digital asset initiatives, including his own meme coin and a stablecoin USD1 launched through the family-backed crypto firm World Liberty Financial.

Critics argue that the GENIUS Act could directly benefit Trump’s personal and familial interests. While Sacks has disclosed the sale of $200 million in crypto-related holdings before his White House appointment, concerns linger about the broader ethical implications. Sacks declined to comment on these during his CNBC appearance, adding fuel to a fire that some Democrats believe could erode trust in the legislation.

A New Era for Dollar-Denominated Digital Finance

Unlike highly volatile cryptocurrencies like Bitcoin, which recently neared a record high of $110,000, stablecoins are pegged to tangible assets like the U.S. dollar, offering more predictability in transactions. Tether, the current market leader, holds over 60% of the global stablecoin market and is backed by U.S.-based financial giant Cantor Fitzgerald.

The potential for regulated, dollar-backed stablecoins to reshape digital finance is vast. According to Deutsche Bank, stablecoin transactions reached $28 trillion last year, outpacing the combined volume of Mastercard and Visa. Sacks emphasised that the GENIUS Act would help formalise a new set of payment rails for the U.S. economy, faster, cheaper, and more efficient than legacy systems.

This shift could also extend the influence of the U.S. dollar globally, particularly as international investment grows. Abu Dhabi’s MGX fund, for example, recently pledged a record-breaking $2 billion in USD1 stablecoins to Binance, the world’s largest crypto exchange. Such moves suggest growing international confidence in U.S.-backed digital finance but only if the regulatory framework keeps pace.

Legislative Hurdles Still Remain

Although the GENIUS Act appears to be on a promising trajectory, it’s not without risk. Republican Senator Josh Hawley recently introduced a controversial amendment to the bill that would cap credit card late fees, a move viewed as a “poison pill” by banking industry advocates. The addition could alienate key financial stakeholders and stall the bill’s final passage.

Nonetheless, the White House remains optimistic. Sacks framed the legislation as not just a crypto innovation, but a national economic strategy aimed at modernising payments and enhancing dollar dominance. As the bill heads towards a final vote, the stakes both economic and political couldn’t be higher.

With bipartisan momentum and high-profile backing from within Trump’s inner circle, the GENIUS Act could mark a transformative moment for the U.S. digital economy. But questions around political ethics, market impact, and regulatory enforcement remain critical as Washington navigates the future of crypto-backed finance.