According to David Sacks, President Donald Trump’s advisor on cryptocurrency, the US government aims to regulate stablecoins and promote their growth within the country.
Speaking on CNBC’s Closing Bell Over Time on February 4, Sacks explained that stablecoins have grown but mostly in markets outside the US. Sacks stated, “The market has already taken off but mostly offshore”. He added that the government aims to “bring that innovation onshore”.
This initiative is part of a broader strategy that also includes integrating Bitcoin
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He highlighted stablecoins’ potential role in strengthening the US dollar’s global presence. “I think the power of stablecoins is that it could extend the dollar’s dominance internationally and extend it online digitally,” he said.
By increasing demand for US Treasurys, stablecoins could also help lower long-term interest rates and support national debt. Sacks estimated that this could create “potentially trillions of dollars” in demand for government bonds.
Stablecoins, digital currencies tied to the value of traditional money, have become a major part of the crypto market. The industry is valued at around $227 billion, with most of these coins pegged to the US dollar. Tether’s USDT
Meanwhile, during Howard Lutnick's Senate confirmation hearing on January 29, he faced questions about stablecoins and financial transparency. How did he respond? Read the full story.
