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
$98,446.71
and advancing blockchain technology.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
What is BNB? The Truth Behind Binance Smart Chain (Animated)
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
$1.00
alone makes up more than 60% of the total market.
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.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
