David Sacks Pushes for Regulatory Clarity to Supercharge Stablecoin Market
David Sacks, venture capitalist and crypto advisor to former President Donald Trump, believes that the proposed U.S. stablecoin legislation could unlock trillions of dollars in demand for U.S. Treasurys. His comments come as lawmakers debate a regulatory framework that could define the future of dollar-backed stablecoins.
“Stablecoins, if backed by short-term Treasurys, could drive unprecedented demand for U.S. debt instruments,” said Sacks during a recent tech policy panel in Washington, D.C.
Stablecoin Bill Could Reinforce Dollar Dominance
The bill under discussion seeks to create a national regulatory structure for stablecoin issuers, requiring them to maintain reserves fully backed by U.S. dollars or equivalent assets like Treasury bills.
“A properly regulated stablecoin market could become a powerful vehicle for expanding the global use of the dollar,” Sacks stated.
Supporters argue the bill will provide clarity to crypto companies while ensuring financial stability and consumer protections.
Trillions in Treasury Demand? Here’s How
According to Sacks and other policy analysts, if stablecoins are required to hold 1:1 reserves in safe, short-term U.S. Treasurys, the market could scale to trillions of dollars in total value, with those funds flowing directly into government debt.
“This is not just a crypto story — it’s a potential structural boost for U.S. financial markets,” said a crypto economist familiar with the draft bill.
With current stablecoin market capitalization around $160 billion, scaling up with regulatory clarity could drive exponential growth, similar to how money market funds ballooned in the 1980s.
Wall Street and Washington Eyes on the Bill
The bill has drawn bipartisan attention, with Republican and Democratic lawmakers recognizing its potential to contain the risks of unregulated digital dollar equivalents.
Banks, fintechs, and crypto-native firms like Circle and Paxos are also closely watching the legislation, which could reshape who can legally issue stablecoins and how they must be structured.
“David Sacks’ push aligns with growing momentum to make stablecoins a bridge between crypto and the U.S. financial system,” said a legal analyst at the Brookings Institution.
A Trillion-Dollar Shift in the Making?
If passed, the stablecoin bill could make U.S. Treasury bills the bedrock of a future digital dollar system, fueling demand from both domestic and international users. Sacks and other crypto advocates argue this is a rare policy window that could benefit both the crypto economy and traditional finance.
“With the right guardrails, stablecoins can be the digital twin of the dollar — and help secure America’s monetary leadership,” Sacks concluded.