US wants onshore stablecoins. According to crypto czar David Sacks, the stablecoin market will be heavily regulated by Trump’s administration and will get pushed onshore, including US dollar-backed digital assets.
Trump’s crypto czar, David Sack,s has revealed that US President Donald Trump’s administration plans to regulate and bring stablecoin innovation onshore.
Apart from Bitcoin, stablecoins are one of the key areas being tackled by the Trump administration.
The stablecoin world “has already taken off but mostly offshore,” Sacks said, noting the US now wants to “bring that innovation onshore.”
US wants onshore stablecoins. Stablecoins as a new digital dollar?
“I think the power of stablecoins is to maybe extend the dollar’s dominance on the international stage and online digitally,” Sacks said.
Where the need for US Treasurys is concerned, “stablecoins could create potentially trillions of dollars of new demand,” according to Trump’s crypto czar, which “could support” its debt and help drive long-term rates lower. Sacks focused on the potential expansion of the US dollar’s reach in world finance through the use of stablecoins.
On Jan. 23, the White House signed an executive order it previously pledged to “promote the development and growth of lawful and legitimate dollar-backed stablecoins worldwide” in order to further the US dollar’s sovereignty.
During a push towards stablecoins, the executive order also airdropped the issuance and all potential forms of a central bank digital currency (CBDC), leaving US stablecoins taking the helm as digital dollars.
Circle’s USDC is regulated in the US.
As part of its stablecoin plans, the White House aims to enable legislation to support stablecoin issuance, Sacks said.
Tether is “happy” to decentralize the ownership of the US debt
In contrast, USDC has achieved legal clarity across some global economies, including Canada and the EU where it became the first issuer to align with the framework for Markets in Crypto-Assets Regulation in July 2024.
With USDT, which constitutes over 50% of the total stablecoin market, likely to get more attention in the US with the Trump administration’s signalling of an intent to bring stablecoin onshore,