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Trump’s crypto czar David Sacks says stablecoin bill is ‘going to pass’

David Sacks, US President Donald Trump’s top adviser on crypto and artificial intelligence, said the administration expects the stablecoin bill to clear the Senate with bipartisan backing.

“We have every expectation now that it’s going to pass,” Sacks told CNBC on May 21, following a key procedural vote that saw 15 Democrats join Republicans to clear the filibuster threshold.

The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act is the most advanced federal effort yet to establish a legal framework for dollar-pegged digital assets.

Sacks said the bill could trigger “trillions of dollars” in demand for US Treasurys by unlocking stablecoin growth under clear rules.

“We already have over $200 billion in stablecoins — it’s just unregulated,” he added. “If we provide legal clarity, we create enormous demand for Treasurys practically overnight.”

Related: GENIUS Act ‘legitimizes’ stablecoins for global institutional adoption

Stablecoin bill moves forward despite Trump controversy

The stablecoin bill’s progress comes despite controversy surrounding the Trump family’s crypto dealings. Critics have raised concerns that the administration benefits from the legislation, given its ties to World Liberty Financial, a crypto firm backed by Trump family members that recently launched a stablecoin, USD1.

Trump’s crypto czar David Sacks says stablecoin bill is ‘going to pass’
The US Senate voted 66–32 to advance debate on the GENIUS stablecoin bill. Source: US Senate

The token is backed by US Treasurys and dollar deposits and has received a $2 billion investment commitment from Abu Dhabi’s MGX fund via Binance.

Sacks, who disclosed the sale of $200 million in crypto-related holdings before joining the White House, declined to comment on whether the president or his family may financially gain from the bill’s passage.

Despite momentum, final passage is not guaranteed. Senator Josh Hawley has added a controversial provision to the bill that would cap credit card late fees, a move that could cost the legislation support from financial industry allies.

Related: Hong Kong passes stablecoin bill, set to open licensing by year-end

Banks panicking over yield-bearing stablecoins

In a May 21 post titled “The Empire Lobbies Back,” New York University professor Austin Campbell said the US banking industry is “panicking” over the rise of yield-bearing stablecoins, which threaten their profit model.

Trump’s crypto czar David Sacks says stablecoin bill is ‘going to pass’
An excerpt of Campbell’s X post. Source: Austin Campbell

Campbell criticized the banking lobby for pressuring lawmakers to defend their interests and block competition from interest-paying stablecoins.

He argued that banks rely on fractional reserve practices to profit while offering low returns to depositors, and fear stablecoins may expose and disrupt that system.

As reported by Cointelegraph, the US Securities and Exchange Commission in February approved the first yield-bearing stablecoin security by Figure Markets.

According to a May 21 report from Pendle, yield-bearing stablecoins have soared to $11 billion in circulation since January 2024, representing 4.5% of the total stablecoin market.

Magazine: TradFi is building Ethereum L2s to tokenize trillions in RWAs: Inside story 

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UK, Australia, Germany, Italy and New Zealand condemn Israel’s plan for new operation in Gaza

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UK joins four countries in condemning Israel's plan for new operation in Gaza

The UK and four allies have criticised Israel’s decision to launch a new large-scale military operation in Gaza – warning it will “aggravate the catastrophic humanitarian situation” in the territory.

The foreign ministers of Britain, Australia, Germany, Italy and New Zealand said in a joint statement that the offensive will “endanger the lives of hostages” and “risk violating international humanitarian law”.

It comes a day after Israel’s security cabinet approved an operation to take military control of Gaza City – and concluded a full takeover of the enclave is required to end the conflict.

It marks another escalation in the war in Gaza, sparked by the Hamas attack of 7 October 2023.

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Can Netanyahu defeat Hamas ideology?

In their joint statement, the UK and its allies said they “strongly reject” the decision, adding: “It will endanger the lives of the hostages and further risk the mass displacement of civilians.

“The plans that the government of Israel has announced risk violating international humanitarian law. Any attempts at annexation or of settlement extension violate international law.”

The countries also called for a permanent ceasefire as “the worst-case scenario of famine is unfolding in Gaza”.

It comes as Sky News analysis has found that airdrops of aid are making little difference to Gaza’s hunger crisis, and pose serious risks to the population – with a father-of-two killed by a falling package.

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Revealed: The dangers of airdrops

Meanwhile, France, Canada, Qatar, the United Arab Emirates and the United Nations all criticised Israel’s plan for a full occupation of Gaza.

Israeli Prime Minister Benjamin Netanyahu “expressed his disappointment” with German Chancellor Friedrich Merz’s in phone call on Friday after Berlin decided it would stop selling arms to Israel.

In a post on X, the Israeli prime minister’s office added: “Instead of supporting Israel’s just war against Hamas, which carried out the most horrific attack against the Jewish people since the Holocaust, Germany is rewarding Hamas terrorism by embargoing arms to Israel.”

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Inside plane dropping aid over Gaza

US ambassador hits out at Starmer

Earlier on Friday, the US Ambassador to Israel, Mike Huckabee, criticised Sir Keir Starmer after he said Israel’s decision to “escalate its offensive” in Gaza is “wrong”.

Mr Huckabee wrote on X: “So Israel is expected to surrender to Hamas & feed them even though Israeli hostages are being starved? Did UK surrender to Nazis and drop food to them? Ever heard of Dresden, PM Starmer? That wasn’t food you dropped. If you had been PM then UK would be speaking German!”

Read more:
Analysis: Israel likely faces an impossible task
How life and colour has been stripped from Gaza

In another post around an hour later Mr Huckabee wrote: “How much food has Starmer and the UK sent to Gaza?

“@IsraeliPM has already sent 2 MILLION TONS into Gaza & none of it even getting to hostages.”

Sir Keir has pledged to recognise a Palestinian state in September unless the Israeli government meets a series of conditions towards ending the war in Gaza.

The UK and its allies criticised Israel as US President JD Vance and UK Foreign Secretary David Lammy met at Chevening House in Kent on Friday.

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Lammy-Vance bromance: Will it last?

Mr Vance described a “disagreement” about how the US and UK could achieve their “common objectives” in the Middle East, and said the Trump administration had “no plans to recognise a Palestinian state”.

He said: “I don’t know what it would mean to really recognise a Palestinian state given the lack of functional government there.”

Mr Vance added: “There’s a lot of common objectives here. There is some, I think, disagreement about how exactly to accomplish those common objectives, but look, it’s a tough situation.”

The UN Security Council will meet on Saturday to discuss the situation in the Middle East.

Ambassador Riyad Mansour, permanent observer of the State of Palestine to the United Nations, said earlier on Friday that a number of countries would be requesting a meeting of the UN Security Council on Israel’s plans.

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BlackRock launching a SOL ETF in first wave would be ‘messed up’ — Analyst

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<div>BlackRock launching a SOL ETF in first wave would be 'messed up' — Analyst</div>

<div>BlackRock launching a SOL ETF in first wave would be 'messed up' — Analyst</div>

BlackRock hasn’t filed for a Solana ETF, but ETF analyst James Seyffart says they shouldn’t be allowed to jump in at the last minute after other issuers’ hard work.

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EthereumMax investors secure partial win in class-action lawsuit

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EthereumMax investors secure partial win in class-action lawsuit

EthereumMax investors secure partial win in class-action lawsuit

Four state-level lawsuits against three celebrities and individuals tied to the EMAX token may proceed after a California judge’s ruling.

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