US Senate Passes Stablecoin Bill Boosting Trillion-Dollar Dollar Demand

The recent passage of the GENIUS Act in the U.S. Senate, which establishes a regulatory framework for dollar-pegged stablecoins, is expected to significantly boost demand for U.S. dollars and government debt, potentially creating trillions of dollars of new demand for U.S. Treasuries. David Sacks, President Trump's crypto and AI advisor, emphasized that the bill provides regulatory clarity and will encourage innovation in blockchain-based payment systems, leading to faster and more efficient dollar-based payments. Analysts warn that stablecoins could disrupt major payment networks like Visa and Mastercard by enabling companies like Stripe and Amazon to offer lower-fee payment options. President Trump has urged Congress to quickly pass the GENIUS Act, aiming for swift enactment without delays or amendments. While some experts highlight potential systemic risks stablecoins pose to traditional banks and the dollar's stability, others see stablecoins as a catalyst for renewed global dollarization, reversing recent declines in the U.S. dollar's international role. The stablecoin market, currently around $250 billion, could grow to $3.7 trillion by 2030, driven by improved regulation and growing adoption in the payments industry.