GENIUS Act Set to Complete Legislation by 5/26 After Senate Vote
Recently passed by the U.S. Senate, the stablecoin legislation known as the GENIUS Act is expected to complete its legislative process by May 26. In an interview on May 21, White House AI Crypto Czar David Sacks stated that if the legislation passes, it could potentially generate “trillions of dollars” in demand for U.S. Treasury bonds overnight. However, some Democrats remain concerned that former President Trump might exploit the legislation for personal gain. Additionally, the Republicans have secretly included a provision to “limit credit card penalties,” which has sparked backlash from the banking sector and may affect the timeline for the bill’s passage.
GENIUS Act Passes Vote, Sacks: “Confident in Completing Legislation”
The GENIUS Act was passed by the U.S. Senate on May 20 at Taiwan time with a vote of 66 to 32, with 15 Democratic senators crossing party lines to support the Republicans. In response, White House AI Crypto Czar David Sacks expressed, “We are now very confident that we can complete the legislation.”
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(U.S. Stablecoin Legislation GENIUS Act Passed! Expected to Complete Legislation by 5/26, Democrats Silent)
Global $200 Billion Stablecoin Circulation Could Create “Trillions in U.S. Treasury Demand”
Sacks also emphasized that there are already over $200 billion in stablecoins circulating globally, but due to the lack of a clear legal framework, they remain in a gray area. He stated:
“Once the legislation establishes the rules, it could create trillions of dollars in demand for U.S. Treasury bonds overnight.”
Sacks Sells Crypto to Avoid Conflict, Trump Family Actively Enters Crypto Space
According to White House data, although Sacks sold approximately $200 million in crypto assets before joining the White House, the Trump family continues to actively enter the crypto space:
- The Trump family-supported crypto project World Liberty Financial issued the stablecoin USD1, claiming it is backed by U.S. Treasuries and cash.
- Abu Dhabi’s MGX Fund announced a $2 billion investment in USD1 for Binance, marking the largest single investment in the crypto space.
Image of Sacks’ statement on selling crypto assets before joining the White House
Controversy Over Potential Trump Family Profits from the Legislation Remains Unresolved, Democrats Strongly Opposed
Many Democratic lawmakers still have concerns regarding the GENIUS Act, believing that:
“The President himself and his family are directly involved in the issuance of cryptocurrency, which is akin to legislating for their own benefit.”
This was one of the primary reasons Democrats previously blocked the GENIUS Act. Although it has procedurally passed now, ethical and regulatory controversies remain.
Hidden Minefields in the Bill, Credit Card Penalty Cap Clause Provokes Discontent in Banking Sector
Republican Senator Josh Hawley secretly inserted a clause in the GENIUS Act to “limit credit card penalty caps,” seen as a “poison pill” for the banking sector, potentially leading to opposition from banks and affecting the bill’s passage timeline. In response, NYU Professor Austin Campbell tweeted that the U.S. banking sector feels anxious about the rise of stablecoins, as they threaten their profit models.
(U.S. GENIUS Act Fully Regulates Payment-Based Stablecoins: Issuance Thresholds, Reserve Standards, and Regulatory Systems Explained)
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