Stablecoin Regulation Could Fuel a $15-20 Trillion Crypto Industry, Says Trump Executive Director

Trump’s Executive Director, Bo Hines, has made a bold prediction regarding the future of the crypto industry, especially amid the anticipated stablecoin regulation. 

Hines, in an interview hosted by MARA CEO Fred Thiel, believes that the Genius Act, which is expected to pass soon, will have monumental effects on the financial landscape. The Genius Act has successfully passed through Senate procedural steps and is now under active floor discussions.

The Significance of the Genius Act

In a discussion with Fred Thiel, CEO of Bitcoin miner MARA, Hines emphasized that the Genius Act represents a rare opportunity for bipartisan legislation to move forward in the Senate. He points out that the last time such legislation was passed was in 2018. According to Hines, both parties understand the necessity for the United States to take the lead in modernizing financial systems.

“Everything else has evolved: the ways in which we communicate, the technology that we use, [but] the ways in which we move money really hasn’t,” Hines noted, suggesting that this delay in updating financial systems has been shocking to many people.

Hines explained that the Genius Act allows for instant settlement times, more cost-effective payments, greater transparency, and secures the global dominance of the US dollar for decades.

He stressed that this legislation should be a bipartisan effort and feels optimistic about its prospects. Speaking further, he mentioned that they’ve already gained support from 15 Democrats on the closure vote and hopes to see it passed in the coming week.

Capital Injection and Industry Growth

Hines also outlined the significant impact this legislation will have on the digital assets ecosystem. He predicts a capital injection of enormous proportions, pushing the crypto industry to a valuation of $15-$20 trillion. With a current crypto market cap of $3.39 trillion, it would surge by approximately 342.48% to reach $15 trillion.

He said this legislation will provide the foundation for key developments like tokenized public securities and 24/7 markets. Moreover, he believes that anyone wishing to access US capital markets will be required to use a dollar-backed stablecoin.

“This is what positions the United States to be the global leader,” he added, advocating for the country to take the lead in adopting digital asset financial technology.

Bitcoin’s Role in the New Digital Ecosystem

Later in the interview, Hines discussed the broader implications of the stablecoin legislation on Bitcoin. He suggested that Bitcoiners will benefit from the increased capital flowing in and out of various asset classes. As more capital becomes available, Hines predicts that people will be purchasing Bitcoin in large amounts.

“We view Bitcoin as digital gold,” Hines reiterated. He again highlighted the idea that Bitcoin is a commodity, not a security, and mentioned its intrinsic stored value, finite nature, and decentralized qualities.

Regarding the government’s potential Bitcoin acquisition strategy, Hines stressed that the goal is to accumulate as much Bitcoin as possible. When asked how much Bitcoin the government should aim for, Hines dismissed the question as “silly,” emphasizing the need to gather as much as feasible within a budget-neutral framework.

Public-Private Partnerships for Bitcoin Accumulation

The MARA CEO Thiel also explored the possibility of a public-private partnership to facilitate Bitcoin accumulation. Thiel believes this could solve two problems simultaneously: it would help the government accumulate Bitcoin while also boosting hash rate capacity among US Bitcoin miners. 

Thiel suggested that the US government could partner with Bitcoin miners and use energy resources to generate Bitcoin for the country’s strategic reserve, an idea Hines describes as “phenomenal.”