The adoption of the GENIUS Act concerning stablecoins will boost demand for US Treasuries “by trillions of dollars,” according to David Sacks, special advisor to Donald Trump on AI and cryptocurrencies, in an interview with CNBC.
The bill will require issuers of “stable coins” to fully back the issuance of assets with government bonds or dollars, introduce AML rules, and enforce enhanced oversight for foreign companies. Major players with a capitalization exceeding $50 billion, including Tether and Circle, will be required to undergo audits.
On May 19, the Senate voted to advance the GENIUS Act, despite criticism from some Democrats. Senator Elizabeth Warren called for a revision of the document to prevent corporations from “issuing their own money.”
The “crypto czar” did not respond to these criticisms but emphasized that 15 Democrats supported the bill.
Concluding the interview, Sacks, who also oversees AI issues, stated that the US administration intends to provide the infrastructure for leadership in the “artificial intelligence race.”
In May, experts from Fireblocks stated that 90% of institutions plan to integrate stablecoins.