David Sacks didn’t flinch. On CNBC’s Closing Bell Overtime, he said the GENIUS Act could spark trillions in demand for U.S. Treasuries. That kind of money doesn’t wait. “Immediate,” he said when asked how fast crypto-backed stablecoins could shift the global dollar game.
Currently, the stablecoin market hovers at $200 billion. Without regulation. Under the GENIUS Act, however, Sacks predicts a tsunami. “Overnight,” he explained. Clear regulations would unleash demand. Demand for digital dollars. Demand for Treasuries. A quiet revolution in the making.
Tether’s already in front. It has about $120 billion in Treasuries. That’s larger than Germany’s bet. Stablecoins are not a theory any longer. They’re a force. And Sacks wants Washington to catch up on this development.
Crypto industry calls bill a historic step
The GENIUS Act has regulations. Actual regulations. Backed by Treasuries or dollars. Foreign issuers must have oversight. Large players like Tether and Circle must be audited and registered. Anti-money laundering regulations are part of the package.
Legislators passed the initial hurdle, 66-32. The Democrats crossed party lines. Crypto executives referred to it as historic. Sacks described it as the start. Matt Hougan of Bitwise concurs. He believes a $2.5 trillion market will quickly emerge. No time like the present. The infrastructure already halfway exists.
But it’s not without a hitch. There’s concern the bill will lead down a slippery slope toward a digital dollar issued by the Fed. That’s not what everybody desires. Senator Elizabeth Warren raised a flag. She referred to Trump’s relationship with USD1, a stablecoin from World Liberty Financial. She’s not the only one.
AI and stablecoins in America’s twin frontiers
Senator Richard Blumenthal warned of the threat posed by foreign actors on the platform to influence power. Sacks refused to take the bait. He deflected those accusations. He cited the votes. “Fifteen Democrats supported the bill,” he told us. “There’ll be no filibuster.” That equals momentum. That equals passage.
He thinks stablecoins aren’t toys for cryptocurrency enthusiasts. They’re tools of payment. They’re digital infrastructure. They make the dollar faster, smoother, and stronger. They take American power into the digital economy.
Before ending his statement, Sacks shifted gears to AI. That’s also his terrain. He warned America would pay a costly price in dollars and military strength if they fell behind in AI. “We’re going to do what’s necessary,” he said. The message here was unequivocal: stablecoins drive the now, and AI defines the tomorrow. And both of them, if Sacks is correct, are American.
