AI Encryption Tsar Sacks: The "GENIUS Act" could create trillions in US debt demand, stablecoin impacts bank profitability

The GENIUS Act, the stablecoin bill that has just been voted through the US Senate, is expected to be completed by 5/26. In this regard, White House AI encryption czar David Sacks said in an interview on 5/21 that assuming the legislation is passed, it may bring "trillions of dollars" of US debt demand overnight. However, there are still Democrats who still have doubts that Trump will use the bill to profit. Coupled with the Republican Party's implicit addition of the "limit on credit card fines" regulation, it triggered a backlash from banks and affected the passage time of the bill.

GENIUS voted in favor, Sacks: "Confident in completing the legislation"

The "GENIUS Act" was passed by a vote of 66 to 32 by U.S. senators on May 20, Taiwan time, with 15 Democratic members crossing over to support the Republicans.

In this regard, White House AI encryption tsar David Sacks stated in an interview: "We are now very confident that we can complete the legislation."

( The U.S. stablecoin bill "GENIUS Act" has been voted through! Complete legislation by 5/26, Democratic Party Warren remains silent )

A total of 200 billion stablecoins circulate globally, and the completion of legislation could create a demand for "trillions of US bonds."

Sacks also emphasized that over $200 billion in stablecoins are already in circulation globally, but due to the lack of a clear legal framework, they still belong to a gray area. However, he stated:

"Once the legislation establishes the rules, it could create trillions of dollars in demand for U.S. debt overnight."

Sacks sells coins to avoid suspicion, and the Trump family is still actively entering the coin market.

According to White House data, although Sacks had sold approximately $200 million worth of encryption assets before entering the White House, the Trump family continues to venture into the coin space:

The cryptocurrency project World Liberty Financial, supported by the Trump family, has issued the stablecoin USD1, claiming it is backed by US bonds and cash as asset collateral.

Abu Dhabi's MGX Fund announced an investment of $2 billion in USD1 to Binance, setting a record for the largest single investment in the crypto space.

The picture shows Sacks' statement on the sale of encryption assets to advance to the White House. The Trump family's controversial profit from the bill remains unresolved, and Democrats strongly oppose it.

Many Democratic Party members still have concerns about the "GENIUS Act," believing that:

"The president himself and his family are directly involved in the issuance of cryptocurrencies, which is equivalent to legislating for their own benefit."

This is one of the main reasons why Democratic Party members previously blocked GENIUS. Although it has currently passed procedurally, there are still ethical and regulatory controversies.

The bill contains hidden landmines, and the credit card penalty cap clause has caused dissatisfaction among the banking industry.

Republican Senator Josh Hawley secretly added a "cap on credit card penalty fees" provision in GENIUS, which is viewed as a "poison pill" for the banking industry and may lead to opposition from the banking sector, affecting the timeline for the bill's passage.

In this regard, NYU professor Austin Campbell also tweeted (X), stating that the American banking industry feels anxious about the rise of stablecoins, as it threatens their profit model.

(The US "GENIUS Act" comprehensively regulates payment stablecoins: issuance thresholds, reserve standards, and regulatory systems at a glance)

This article AI encryption czar Sacks: The "GENIUS Act" could create trillions in U.S. debt demand, stablecoin impacts bank profitability first appeared in Chain News ABMedia.