Stablecoin Regulation Could Flood U.S. Treasury with Trillions—Wall Street Already Licking Its Lips

Forget printing money—Washington might just mint a crypto cash cow instead. Clear stablecoin rules could unlock a tidal wave of institutional capital, with the Treasury poised to skim billions in tax revenue off the top.

Banks and hedge funds have been circling the stablecoin space for years, waiting for regulatory certainty. Now that bipartisan support is building, the dam could break fast—ironically giving the government a cut of the very system it once feared.

Of course, this being finance, someone’s already gaming how to offshore the profits while keeping the tax liabilities stateside. Some things never change.

• David Sacks claims the GENIUS Act could unlock trillions in demand for U.S. Treasuries by providing regulatory clarity for stablecoins.
• The bill aims to preserve U.S. dollar supremacy globally by enabling faster, secure, and dollar-backed digital payments.
• Critics warn of conflicts of interest, citing Trump-linked stablecoin USD1 and foreign investments as ethical red flags.

Stablecoin advocate David Sacks, the White House’s senior advisor on cryptocurrency and AI under President Donald Trump, has backed a proposed stablecoin bill, touting it as a potential multi-trillion-dollar windfall for the U.S. Treasury.

Speaking in a nationally televised interview on Wednesday, Sacks described the GENIUS Act, short for Guiding and Establishing National Innovation for U.S. Stablecoins, as a transformative national economic strategy.

White House crypto czar David Sacks says stablecoin bill will unlock ’trillions’ for U.S. Treasury https://t.co/SfOw09ZRAq

“If we provide the legal clarity and legal framework for this, I think we could create trillions of dollars of demand for our Treasuries practically overnight,” Sacks declared, making one of the most aggressive cases yet for stablecoin regulation from a top U.S. official.

The bill, which cleared a major hurdle in the Senate this week with a bipartisan 66-32 cloture vote, WOULD establish strict federal standards for stablecoin issuers. Under its provisions, every token must be fully backed by transparent, liquid reserves, including cash or U.S. Treasury bonds, ensuring the “stability” of stablecoins that mimic the value of fiat currencies.

While stablecoins like Tether have already facilitated a staggering $28 trillion in transactions last year, exceeding even Visa and Mastercard, the U.S. has so far lacked a federal framework to govern their issuance and use. The GENIUS Act seeks to change that, ushering in a regulatory regime that supporters say could strengthen the dollar’s grip on the digital economy. Sacks, in no uncertain terms, positioned stablecoins as the future of global payments.

“This is more than just crypto. It’s about preserving the U.S. dollar’s dominance in a digital world,” he said. “We’re talking about a faster, cheaper, more secure payments system built directly on the dollar, not against it.”

GENIUS Act Faces Heat Over Trump Linked Stablecoin

But not everyone is convinced. The bill’s momentum has ignited a fierce ethical and political backlash, especially over the TRUMP family’s deepening ties to the crypto industry.

One focal point of concern is USD1, a stablecoin launched by World Liberty Financial and publicly backed by Donald Trump Jr. USD1 is collateralized entirely by dollar deposits and U.S. Treasuries, precisely the kind of asset class that would be legitimized and protected under the GENIUS Act.

Earlier this month, MGX, an Abu Dhabi-based investment fund, routed a record-setting investment of USD 1 through Binance, the world’s largest cryptocurrency exchange. The MOVE triggered alarm bells across Washington, with critics warning that the bill could serve as a fast track for foreign money to enter a Trump-aligned financial vehicle — and potentially the Trump family’s own pockets.

Senator Chris Murphy was blunt in his criticism: “The Senate has a chance, right now, to shut down Trump’s biggest crypto corruption scheme. The bill, as it stands, gives the president a free pass from ethics rules.”

The Senate has a chance – right now – to shut down Trump’s biggest crypto coin corruption. The pending bill in the Senate regulates a kind of crypto called "stablecoin", but exempts the President from the ethics rules. We shouldn’t pass that bill unless that loophole is closed. pic.twitter.com/eHLeCdBV9m

Senator Elizabeth Warren echoed the warning, demanding the inclusion of stronger ethics protections in the bill to ensure that no elected official, past or present, can profit from its passage.

“This isn’t just about stablecoins; it’s about the integrity of our institutions,” Warren said. “Without clear guardrails, we’re opening the door to corruption on a historic scale.”

Despite the mounting opposition, the bill’s supporters are pressing forward. They argue that regulation is overdue and that failing to act could leave the U.S. dollar vulnerable in an increasingly digital and decentralized world.

Bitcoin Booms, But All Eyes on Stablecoins

While Bitcoin continues to surge, hitting a new high of currently trading at $110,761, many analysts say the real battle lies in the realm of stablecoins, not speculative assets.

Stablecoins, unlike their volatile crypto cousins, are pegged to real-world assets and designed for stability, making them ideal for everyday transactions and institutional adoption. Tether currently dominates the space, controlling over 60% of the market, with U.S. securities firm Cantor Fitzgerald serving as its banking partner.

If the GENIUS Act becomes law, it could open the door for a new generation of government-compliant stablecoins, potentially remapping the global payments landscape.

Sacks believes this could be a game-changer not just for crypto but for U.S. economic security in the 21st century.

“Stablecoins let us export the dollar at the speed of the internet,” he said. “It’s a chance to embed U.S. financial strength into the code of the global economy.”

As the Senate prepares for a final vote, the world watches closely. What began as a wonky piece of financial legislation may now be the most consequential crypto law ever debated and possibly the most controversial.

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