- White House plans joint Senate-House legislative effort on digital assets and stablecoins within 100-day timeline.
- Stablecoins could generate substantial Treasury demand, potentially lowering long-term interest rates.
- New regulatory framework aims to prevent offshore crypto frauds while maintaining U.S. competitive advantage.
- FIT 21 Bill to serve as foundation for new digital asset legislation with modifications.
- Bitcoin Reserve initiative separate from Sovereign Wealth Fund, awaiting working group formation.
The White House is accelerating its cryptocurrency regulatory agenda through a coordinated legislative effort between Senate and House committees. David Sacks, White House crypto and AI czar, announced during a press conference that Agriculture and Finance/Banking Committees from both chambers would collaborate on comprehensive digital asset legislation.
The initiative emphasizes stablecoins’ potential role in reinforcing U.S. dollar dominance. “Stablecoins have the potential to ensure American dollar dominance internationally… and create potentially trillions of dollars of demand for US Treasuries,” Sacks explained, highlighting how digital assets could impact government funding costs.
Senator Tim Scott, Senate Banking Committee Chair, expressed optimism about passing both the GENIUS stablecoin Bill and broader digital asset legislation within 100 days. The regulatory framework builds upon the existing FIT 21 Bill, which passed the House last year with bipartisan support despite concerns about its commodity classification process for tokens.
The proposed legislation aims to address crypto de-banking while keeping innovation onshore. Congressman French Hill, House Finance Committee Chair, confirmed the new digital assets Bill would maintain FIT 21’s core elements with targeted amendments. The approach reflects lessons learned from the FTX collapse, which Sacks cited as evidence for stronger domestic oversight.
Regarding future initiatives, Sacks confirmed plans for a Bitcoin Reserve, separate from the proposed Sovereign Wealth Fund. This reserve would potentially incorporate seized assets, as outlined in previous executive orders. Implementation details await the formation of the White House digital assets working group.
Market observers note that successful legislation could significantly impact the cryptocurrency landscape, particularly in establishing clearer guidelines for stablecoin issuers and digital asset classifications. However, GT Thompson, House Agriculture Committee Chair, cautioned that educating new Congress members on cryptocurrency complexities might extend the timeline.
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