Trump’s Advisor Discusses Crypto Legislation
During an event at the White House on March 7, 2025, President Trump was seen with his top advisor on cryptocurrency and AI, David Sachs. Sachs expressed optimism regarding upcoming legislation aimed at cryptocurrency, suggesting that it could earn vital bipartisan support in the Senate. He believes this would, in turn, generate significant demand for the U.S. Treasury.
“Currently, we have over $200 billion in unregulated stubcoins,” Sachs mentioned in an interview with CNBC. “If we can offer legal clarity, we could potentially see demand reach trillions of dollars for the Treasury quite rapidly.”
This proposed legislation, which aims to regulate stubcoins, has reportedly gathered enough support in the Senate to bypass any filibuster attempts, with 15 Democrats voting in favor. Sachs noted that they are confident about the bill’s passage but did not address questions regarding potential conflicts of interest associated with the president and his family benefiting from the law.
Historically, Democrats have voiced concerns over Trump’s personal ventures in cryptocurrency, including involvement with meme coins from his family’s business, citing a serious conflict of interest. This legislation is particularly significant as it attempts to regulate stubcoins, which are tied to stable values like the U.S. dollar, distinct from more volatile digital currencies such as Bitcoin.
As for Bitcoin, it has recently reached record highs, nearing $110,000. Tether, a major player in the stablecoin landscape, controls over 60% of the market and has seen transactions total around $28 trillion last year, outpacing the combined volume of Visa and MasterCard.
Sachs, gaining influence within Trump’s circle, described the proposed bill not only as a regulatory measure but also as a crucial part of a broader economic strategy. “Stablecoins provide a more efficient and cost-effective payment system, essentially a new avenue for the national economy,” he explained.
Despite these developments, the White House remains engaged, even as concerns about potential conflicts continue to rise. Sachs reportedly sold off $200 million in cryptocurrency holdings prior to working with the administration, but Trump and his family appear intent on expanding their cryptocurrency interests further.
Additionally, Trump is associated with Liberty Financial and has introduced a new stubcoin (USD1), which is secured by the Treasury and dollar deposits. Meanwhile, the MGX investment fund from Abu Dhabi has made headlines by investing $2 billion into Binance, marking a significant milestone in the cryptocurrency sector.
However, not everything is progressing smoothly. Senator Josh Hawley has added a contentious measure to the bill that would impose restrictions on credit card deferral fees, complicating the legislation’s journey.
