Stablecoins can secure U.S. dollar dominance: Trump’s crypto czar

Stablecoins can secure U.S. dollar dominance: Trump’s crypto czar

Sacks, Trump’s Crypto Czar, Says Stablecoins Could Strengthen U.S. Dollar Dominance Following GENIUS Act Proposal

David Sacks, White House crypto and AI czar, has voiced strong support for stablecoins as a potential tool to bolster the U.S. dollar’s global dominance. His comments came just hours after Senator Bill Hagerty introduced the GENIUS Act, which aims to clarify and establish regulations for stablecoin usage.

During a press conference alongside key GOP officials, Sacks outlined President Donald Trump’s vision for America’s approach to digital assets. Sacks emphasized that stablecoins—digital currencies pegged to fiat dollars and operating on blockchain networks—could play a significant role in reinforcing the U.S. dollar’s supremacy in global markets.

Sacks also highlighted the potential regulatory framework surrounding stablecoins, suggesting that new policies may require market participants to hold reserves almost exclusively in U.S. Treasury Bills to ensure stability and trust in these digital assets.

GENIUS Act and Congressional Focus on Stablecoin Regulation

As the debate around stablecoins intensifies, the GENIUS Act, introduced by Senator Hagerty, has gained attention. The bill is designed to establish clearer guidelines for stablecoin transactions and ensure that the market operates within a defined legal framework. According to reports from February 4, the Trump administration is prioritizing stablecoin regulation, with Congress expected to play a key role in shaping future policies.

In response to inquiries about Bitcoin’s role in Trump’s financial plans, Sacks confirmed that exploring the feasibility of a U.S. Bitcoin reserve was a key focus for the crypto council. The U.S. is already the largest sovereign holder of Bitcoin, with approximately 207,000 BTC primarily acquired through criminal seizures. A proposal from Senator Cynthia Lummis seeks to expand this stockpile and alter laws to enable the Treasury Department to hold Bitcoin.

When asked about the possibility of the U.S. government establishing a sovereign cryptocurrency fund, Sacks deferred to Howard Lutnick, the upcoming Commerce Secretary, suggesting he would have more details on the issue.

Stablecoins Gain Traction in Senate, Policy Development Accelerates

The press conference also featured prominent lawmakers including Senate Banking Committee Chair Tim Scott, House Financial Services Committee Chair French Hill, Senate Agriculture Committee Chair John Boozman, and House Agriculture Committee Chair G.T. Thompson. Representative Hill confirmed that both chambers of Congress are working together to speed up crypto policy development. For the first time, these committees have established subcommittees dedicated to digital assets.

The heightened focus on crypto regulation reflects growing bipartisan support for clearer rules in the space, with stablecoins positioned as a central issue in the evolving landscape of digital finance.

Looking Ahead: The Future of U.S. Crypto Policy

As discussions on stablecoins and digital assets continue to unfold, the Trump administration’s focus on reinforcing the U.S. dollar’s dominance through blockchain technology marks a significant shift in the country’s approach to cryptocurrency. With major regulatory changes on the horizon, the role of stablecoins in the global economy, as well as the U.S. government’s crypto holdings, will likely remain key topics for lawmakers and industry leaders alike.