David Sacks, the White House’s top crypto and AI advisor, has expressed optimism regarding the GENIUS Act, which is currently moving through the Senate.
Discussion on the GENIUS Act
Sacks highlighted the bill's potential to create significant demand for U.S. Treasuries. He noted that there are currently over $200 billion in stablecoins that are unregulated. By providing legal clarity and a regulatory framework, it could unlock trillions in demand for U.S. Treasuries almost overnight.
Potential Benefits and Risks
Sacks indicated that the bill could modernize the U.S. payment system, making it more efficient and cost-effective. However, there are concerns among Democrats regarding potential conflicts of interest linked to President Trump's involvement in crypto ventures.
Prospects for the Bill's Passage
Despite support from 15 Democratic senators, the bill could face challenges. Concerns arise from amendments added by Senator Hawley that may complicate matters. Additionally, measures suggested by Senator Baldwin might deter banking supporters, delaying the bill's progress.
The proposed GENIUS Act has the potential to create a new landscape for stablecoins, yet existing divides between the crypto sector and the U.S. government may hinder its successful passage.
