Stablecoin Bill Could Drive Trillions in Treasury Demand, Says White House Advisor

White House crypto advisor David Sacks predicts a seismic shift in U.S. Treasury markets if Congress passes the GENIUS Act. The legislation would mandate 100% Treasury backing for stablecoins, potentially transforming the $200 billion sector into a multi-trillion-dollar market overnight.

"This isn’t just about crypto regulation—it’s a fiscal game-changer," Sacks told CNBC. The current stablecoin market operates in a regulatory gray area, but Treasury-collateralized digital dollars could attract global institutional demand at scale.

The proposed bill WOULD require dollar-pegged tokens to hold equivalent reserves in cash or short-term government debt. Analysts suggest this could create structural demand for Treasuries comparable to money market funds during crisis periods.