David Sacks, the White House AI and crypto czar, recently emphasized the potential of stablecoins in maintaining the dominance of the U.S. dollar. His remarks came just hours after Senator Bill Hagerty proposed the GENIUS Act to regulate the stablecoin sector.
Strengthening Dollar Dominance with Stablecoins
Stablecoins, which are digital assets pegged to fiat currencies like the U.S. dollar, could play a crucial role in global finance. Sacks highlighted how upcoming regulations might require market participants to back these assets primarily with U.S. Treasury Bills, reinforcing the dollar’s strength worldwide.
Regulatory Focus on Stablecoins
On Feb. 4, legislative priorities under the Trump administration took shape as Congress signaled an intent to fast-track stablecoin regulations. The GENIUS Act, introduced by Senator Hagerty, aims to provide a clear legal framework for stablecoins and crypto transactions.
Bitcoin Reserve and U.S. Crypto Holdings
During the press conference, Sacks was asked about Trump’s interest in a strategic Bitcoin (BTC) reserve. He confirmed that exploring the feasibility of such a reserve was a top priority for the administration’s crypto council. The U.S. government currently holds around 207,000 BTC, primarily acquired through criminal seizures.
A proposal from Senator Cynthia Lummis seeks to expand this stockpile by changing existing laws to allow the Treasury Department to officially hold BTC.
However, Sacks refrained from confirming whether a U.S. sovereign fund would actively accumulate more cryptocurrencies, stating, “You’ll have to ask soon-to-be Commerce Secretary Howard Lutnick about that.”
Congress Unites on Crypto Policy
The press conference also saw major congressional leaders reaffirming their commitment to crypto regulation. 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 jointly announced the formation of dedicated crypto subcommittees within their respective committees.
Representative Hill confirmed that both the House and Senate will work together to accelerate and streamline crypto policy discussions through joint working groups.