Emre Yumlu 
The Trump administration plans to regulate stablecoins and focus on dollar-backed digital assets, according to Trump’s crypto czar, David Sacks. Sacks revealed that stablecoins are a key area of interest for the Trump administration, alongside Bitcoin adoption and blockchain development.
The stablecoin market has already seen rapid growth but is largely based offshore, said Sacks, adding that the US now aims to “bring this innovation onshore.”
Stablecoins represent a $227 billion industry, with 97% of the market comprised of US-dollar-backed stablecoins like Tether’s USDt, which alone accounts for over 60% of the total market capitalization, according to CoinGecko data.
Could Stablecoins Be the New Digital Dollar?
Sacks believes the strength of stablecoins lies in their ability to expand the US dollar’s global dominance and bring it into the digital realm.
The Trump crypto czar also pointed out that stablecoins could generate “potentially trillions of dollars” in new demand for US Treasury securities, which could help support the national debt and lower long-term interest rates.
Sacks emphasized the potential benefits of stablecoins in broadening the influence of the US dollar in global finance.
The White House previously committed to promoting the sovereignty of the US dollar, including actions to encourage the development and growth of lawful, dollar-backed stablecoins globally, in an executive order signed by Trump on January 23.
While backing stablecoins, the executive order also banned the issuance of central bank digital currencies (CBDCs), putting the focus squarely on US stablecoins as digital dollars.
USDC is Regulated in the US
As part of its stablecoin strategy, the White House plans to enable legislation supporting stablecoin issuance, Sacks noted. However, Circle’s USD Coin (USDC) is already issued and managed in the US, with the issuer positioning it as “regulated and fully reserved.” USDC is the second-largest stablecoin, accounting for 24% of the total stablecoin market cap.
Unlike USDC, which is widely considered a regulated stablecoin in the US, Tether’s USDT has faced issues in jurisdictions like the European Union, where it has increasingly been labeled a noncompliant stablecoin.
Tether CEO Paolo Ardoino stated in October 2024 that Tether is the “best friend of the US government,” holding more US securities than Germany and “far more than any other competitor or financial institution globally.”
“We are happy to decentralize the ownership of US debt, making the US much more resilient,” Ardoino added.
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