GENIUS Act Advances in Senate, Aims to Boost U.S. Treasury Demand by $1 Trillion

David Sacks, the U.S. Crypto and AI Czar under President Trump, has expressed strong confidence that the GENIUS Act, a stablecoin bill, will pass with significant bipartisan support. Sacks highlighted the potential economic impact of the bill, suggesting it could create trillions of dollars in demand for U.S. Treasury securities almost immediately. The bill's anticipated approval reflects growing bipartisan consensus on stablecoin regulation in the United States, coinciding with Bitcoin reaching all-time highs.

The GENIUS Act aims to ensure the compliance of stablecoins, which could unlock hundreds of billions of new funds and accelerate the maturity and differentiation of the stablecoin market. The bill requires stablecoin issuers to maintain a 1:1 backing with high-quality assets, such as U.S. dollars or Treasury bills, and includes provisions to protect customers and ensure U.S. dollar dominance. The anticipated passage of the bill is expected to significantly increase the demand for U.S. Treasury securities, potentially ballooning to more than $1 trillion.

The Senate's advancement of the GENIUS Act marks a significant step towards regulating stablecoins and ensuring the stability of the U.S. financial system. The bill's provisions, which include strict backing requirements and customer protection measures, are designed to foster trust in stablecoins and promote their widespread adoption. The anticipated passage of the bill is expected to have a profound impact on the U.S. economy, creating trillions of dollars in demand for U.S. Treasury securities and bolstering the U.S. dollar's global dominance.

In news yesterday, the U.S. Senate voted to proceed to formal consideration of the "GENIUS Stablecoin Act" through a cloture motion, with at least 15 Democratic senators changing their stance to support, including Cortez Masto, Adam Schiff, Mark Warner, among others. The bill will now enter the full consideration process, having only passed the cloture motion, with the bill itself yet to pass. The "GENIUS Act" will proceed to debate and amendment in the Senate.