Crypto-Tsaar from Trump: ‘Stablecoin law is adopted’

David Sacks, labeled by many as Donald Trump’s crypto-citizen, is sure of his case: the new Stablecoin law is coming.

“We are now convincing that the proposal will reach the finish line,” Sacks told CNBC on 21 May. That statement followed on the news that 15 Democrats joined the Republicans to agree to the new law. And that can sometimes be very important for the financial future of the United States.

Why is the Stablecoin Act so important for the United States?

According to Sacks, the new law can generate “billions of dollars” in demand for US government bonds, because clear rules can stimulate the growth of the sector. Stablecoins have recently proven themselves as important buyers in the market for US government bonds.

For USDT publisher Tether, government bonds are the most important source of income, and are the coverage of the stablecoins.

“We already have more than 200 billion dollars in Stablecoins, but it is currently just an unregulated industry. If we create legal clarity, we practically immediately create enormous demand for government bonds,” said Sacks about the new law.

And that idea makes Stablecoins, and by extension the success of Bitcoin (BTC), an important matter for the US government. All the more because the foreign demand for government bonds is decreasing. China, among others, no longer buys American government debts.

Good for Bitcoin

These developments are good for Bitcoin, because America therefore gets a kind of indirect importance in the success of the digital currency. A strong development of the Bitcoin course means more demand for stablecoins, which means that that market is growing, and they have more room to buy government bonds.

And at the same time there is also an indirect positive effect for Bitcoin. Because Tether, publisher of the largest Stablecoin on Earth, reserve 15% of his profit for buying the largest crypto coin.

So if this market continues to grow and Tether also benefits from that growth, they will make more profit and they can buy more bitcoin.