![](\"https:\/\/youragentpage.info\/wp-content\/uploads\/2025\/05\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDUvMDE5NmY3NDEtNTU3Ni03YjFkLThmZjktMjk1NzMzOThhNGFh.jpg\")
<\/p>\n<\/p>\n<\/p>\n<\/p>\n
<\/p>\n
David Sacks, US President Donald Trump’s top adviser on crypto and artificial intelligence, said the administration expects the stablecoin bill to clear the Senate with bipartisan backing.<\/p>\n
“We have every expectation now that it’s going to pass,” Sacks told<\/a> CNBC on May 21, following a key procedural vote that saw 15 Democrats join<\/a> Republicans to clear the filibuster threshold.<\/p>\n The Guiding and Establishing National Innovation for US Stablecoins (GENIUS)<\/a> Act is the most advanced federal effort yet to establish a legal framework for dollar-pegged digital assets.<\/p>\n Sacks said the bill could trigger “trillions of dollars” in demand for US Treasurys by unlocking stablecoin growth under clear rules.<\/p>\n “We already have over $200 billion in stablecoins — it’s just unregulated,” he added. “If we provide legal clarity, we create enormous demand for Treasurys practically overnight.”<\/p>\n Related: <\/strong><\/em>GENIUS Act ‘legitimizes’ stablecoins for global institutional adoption<\/strong><\/em><\/a><\/p>\n The stablecoin bill’s progress comes despite controversy surrounding the Trump family’s<\/a> crypto dealings. Critics have raised concerns that the administration benefits from the legislation, given its ties to World Liberty Financial<\/a>, a crypto firm backed by Trump family members that recently launched a stablecoin, USD1.<\/p>\n The token is backed by US Treasurys and dollar deposits and has received a $2 billion investment commitment<\/a> from Abu Dhabi’s MGX fund via Binance.<\/p>\n Sacks, who disclosed the sale of $200 million<\/a> in crypto-related holdings before joining the White House, declined to comment on whether the president or his family may financially gain from the bill’s passage.<\/p>\n Despite momentum, final passage is not guaranteed. Senator Josh Hawley has added<\/a> a controversial provision to the bill that would cap credit card late fees, a move that could cost the legislation support from financial industry allies.<\/p>\n Related: <\/strong><\/em>Hong Kong passes stablecoin bill, set to open licensing by year-end<\/strong><\/em><\/a><\/p>\n In a May 21 post titled “The Empire Lobbies Back,” New York University professor Austin Campbell said the US banking industry is “panicking” over the rise<\/a> of yield-bearing stablecoins, which threaten their profit model.<\/p>\n Campbell criticized the banking lobby for pressuring lawmakers to defend their interests and block competition from interest-paying stablecoins<\/a>.<\/p>\n He argued that banks rely on fractional reserve practices to profit while offering low returns to depositors, and fear stablecoins may expose and disrupt that system.<\/p>\n As reported by Cointelegraph<\/a>, the US Securities and Exchange Commission in February approved the first yield-bearing stablecoin security by Figure Markets.<\/p>\n According to a May 21 report from Pendle, yield-bearing stablecoins have soared to $11 billion<\/a> in circulation since January 2024, representing 4.5% of the total stablecoin market.<\/p>\nStablecoin bill moves forward despite Trump controversy<\/h2>\n
Banks panicking over yield-bearing stablecoins<\/h2>\n