The White House crypto and AI czar says the GENIUS Act could bring multi-trillion-dollar demand for stablecoins.
The cryptocurrency market is seeing yet another bullish momentum, and investors are pouring funds into stablecoins before buying volatile assets.
According to data from CoinMarketCap, the total value of stablecoins is close to an all-time high of $250 billion, thanks to the steady rise since January.
Tether’s USDT is leading the pack with a $152.4 billion market cap. Circle’s USDC is at $61 billion.
The increasing demand for stablecoins came as Bitcoin BTC $122 584 24h volatility: 0.2% Market cap: $2.44 T Vol. 24h: $70.10 B reached a new ATH of nearly $112,000 earlier today. Moreover, the global crypto market cap is at a local high of $3.52 trillion — $200 billion away from its ATH in mid-December 2024.
Can the GENIUS Act Bring Trillions?
David Sacks, the White House crypto and AI czar, says yes.
Sacks is optimistic that the GENIUS Act (Giving Equitable National Interest to US Stablecoins) will increase the demand for US Treasuries, according to a CNBC report.
Higher demand for Treasuries makes it easier for the US government to borrow money, resulting in low interest rates. This would push investors toward diverse investments like stocks and cryptocurrencies.
So far, 15 democrats have joined the republicans in supporting the GENIUS Act.
On May 20, Coinspeaker reported that some of the Democratic Senators — Mark Warner, Adam Schiff, and Ruben Gallego, to name a few — shifted from opposing the bill to supporting it.
The GENIUS Act will bring a clear regulatory framework for stablecoins. For instance, it will only allow regulated fintech companies and banks to issue stablecoins.
It’s not just the US that’s trying to profit from stablecoins. On May 21, Hong Kong’s Legislative Council passed a bill that allows institutions to apply for stablecoin issuance licenses through the Hong Kong Monetary Authority to boost the region’s crypto growth.
On May 20, Lee Jae-myung, a South Korean democratic presidential candidate, proposed the creation of a won-backed stablecoin.
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