White House Crypto Czar Prioritizes Stablecoin Legislation in Push for Regulatory Clarity

David Sacks, the newly appointed White House AI and crypto czar, has set his sights on stablecoin legislation as the first major step toward establishing a clear regulatory framework for digital assets in the U.S.

Speaking on CNBC’s Closing Bell Over Time on Tuesday, Sacks emphasized that lawmakers are committed to pushing stablecoin regulations through Congress within the next six months.

Sacks joined key congressional leaders, including Sen. Tim Scott (R-S.C.), Rep. French Hill (R-Ark.), and Sen. John Boozman (R-Ark.), at a press conference outlining the administration’s approach to crypto policy. Central to their agenda is the stablecoin bill proposed by Sen. Bill Hagerty (R-Tenn.), which aims to establish standardized rules for the issuance and use of stablecoins, a fast-growing segment of the digital asset market.

Stablecoins as a Strategic Asset

Stablecoins, digital assets pegged to traditional currencies like the US dollar, have gained traction globally, but US lawmakers are keen to ensure that their adoption strengthens the dollar’s role in international finance.

Sacks and his team believe a well-regulated stablecoin market could drive trillions of dollars in demand for the dollar and help lower long-term interest rates by reinforcing its dominance in digital finance.

“This is an area that has already taken off, mostly offshore. We want to bring that innovation onshore and enable legislation to allow the issuance of stablecoins in the United States. And I think the power of stablecoins is that it could extend the dollar’s dominance internationally, extend it online digitally, and create potentially trillions of dollars of new demand for our US Treasuries, which could help support our debt and help bring down long-term interest rates,” Sacks said.

The push for stablecoin legislation aligns with broader ambitions within the administration to position the US as a leader in crypto innovation. Sacks noted that beyond stablecoins, his team is evaluating the feasibility of a national bitcoin reserve – an idea championed by President Donald Trump during his campaign.

“We havent yet committed to doing it but it’s one of the first things we going to be looking at,” Sacks said about the prospects of a Bitcoin reserve, noting that the US sovereign wealth fund President Donald Trump has planned could make crypto part of its portfolio.

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Sacks’ Influence in Washington

Since being appointed in December, Sacks has quickly emerged as a central figure in shaping the White House’s crypto policy. Despite lacking direct regulatory authority, his influence is bolstered by close ties to the administration and key industry players. His appointment followed a notable shift in his political alignment; once a vocal critic of Trump, Sacks hosted a $12 million fundraiser for the president’s campaign last year.

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Tuesday’s announcements mark the first major policy event under Sacks’ leadership. His declaration at the Crypto Ball that “The war on crypto is over” underscores the administration’s intent to foster industry growth rather than impose restrictive regulations. With legislative and regulatory momentum building, the next six months could prove pivotal in defining the future of digital assets in the United States.

In a related development, the Securities and Exchange Commission (SEC) signaled a shift in its stance on crypto regulation. Under new leadership, the agency has launched a Crypto Task Force led by Commissioner Hester Peirce. In a statement titled The Journey Begins, Peirce outlined the SEC’s goal of creating a more transparent and predictable regulatory environment for digital assets.

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Unlike previous administrations, which were often seen as adversarial to the crypto industry, the new SEC approach includes soliciting public input, clarifying which digital assets fall under securities laws, and streamlining compliance measures for token issuers.