David Sacks, the newly appointed AI and crypto czar under President Donald Trump, has made stablecoin legislation his top priority as he works alongside lawmakers to establish a clearer regulatory framework for digital assets in the U.S. Speaking on CNBC’s Closing Bell Over Time on Feb. 4, Sacks stated that stablecoins, a rapidly growing sector primarily flourishing overseas, need to be brought onshore to reinforce the dominance of the U.S. dollar in the global financial system.

Stablecoin Legislation: A Priority for the U.S.

Sacks, along with key Republican lawmakers such as Sen. Tim Scott (R-S.C.), Rep. French Hill (R-Ark.), and Sen. Bill Hagerty (R-Tenn.), is backing a new bill aimed at setting regulatory standards for stablecoins. The goal is to create a clear legal framework that encourages innovation while ensuring compliance with financial regulations.

Stablecoins, pegged to real-world assets like the U.S. dollar, have surged in popularity, representing a $227 billion market, with Tether’s USDT leading the sector. Despite the growing demand, most stablecoin activity remains offshore. The new legislation aims to change that by establishing a U.S.-based regulatory environment, positioning stablecoins as a viable alternative to a central bank digital currency (CBDC), which the Trump administration has explicitly opposed.

Bitcoin Reserve and the Future of U.S. Crypto Policy

Beyond stablecoins, Sacks and his task force are also evaluating the feasibility of a Bitcoin reserve or digital asset stockpile, an idea floated during Trump’s campaign. Although no firm commitment has been made, Sacks emphasized that it remains an area of serious study within the administration.

Meanwhile, the SEC, under new leadership, has signaled a major shift in its approach to crypto regulation. The newly formed Crypto Task Force, led by SEC Commissioner Hester Peirce, aims to create a more transparent and predictable regulatory environment. The task force is actively soliciting input from industry stakeholders and has pledged to clarify which crypto assets fall under securities laws, establish clear paths for token issuance, and ensure compliance measures don’t stifle innovation.

10% Of Money Will Likely Be Stablecoins By The Next Decade- Circle CEO | HODL FM
Circle CEO predicts stablecoins will comprise 10% of global money by 2034, highlighting rapid adoption and growth.
hodl-post-imageHODL FM: The Wildest Ride in the Crypto MarketAbimbola Adu
hodl-post-image

Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL FM strongly recommends contacting a qualified industry professional.