David Sachs, Director of Artificial Intelligence and Cryptocurrency at the White House, noted that support for the GENIUS Act by the U.S. Senate could lead to a trillion-dollar demand for stablecoins. He emphasized:
This is reported by Finway
“We will create a demand for trillions of dollars in the form of our treasury bonds practically overnight”
. According to him, the adoption of this legislation will lay the foundation for the mass adoption of crypto assets.
Matt Hougan, Chief Investment Officer (CIO) of Bitwise, also expressed optimism about the bill:
“Policymakers in Washington have taken the right step. I don’t want to celebrate prematurely, but it seems that this summer we will see the first comprehensive crypto regulatory law in the U.S.”
. He pointed out that the gradual passage of the bill could serve as a catalyst for sustained growth in the crypto market.
Contents of the GENIUS Act
On May 19, 2025, the U.S. Senate passed the GENIUS Act, which received bipartisan support with 66 votes in favor and 32 against. This document regulates the stablecoin market, specifically requiring issuers to back their tokens with U.S. treasury securities.
Analysts believe that the new law opens the door to broader use of digital assets in the financial system. Hougan emphasized that the approaches laid out in the legislation could lead to growth in crypto assets, particularly Ethereum (ETH), Solana (SOL), and DeFi projects such as Uniswap (UNI) and Aave (AAVE).
Reactions and Potential Consequences
In the wake of the vote, activists from the Stand With Crypto campaign sent over 60,000 letters supporting the bill. However, some politicians expressed their dissatisfaction, including Democrat Elizabeth Warren. She criticized the disregard for President Trump’s connections to the cryptocurrency project World Liberty Financial.
According to CoinMarketCap, the market capitalization of stablecoins reached nearly $250 billion at the time of this writing. Hougan is confident that the passage of the GENIUS Act will allow major banks to participate in stablecoin trading, which could significantly alter the financial infrastructure of the U.S.
“This is a true ‘Genius Act’ that will be the first step towards transitioning the entire financial infrastructure to blockchain,” concluded Hougan.