The Trump administration, under President Donald Trump, is moving to regulate stablecoins and enhance their development on US soil, according to crypto czar David Sacks. He announced that the stablecoin sector, which currently represents a significant $227 billion market largely offshore, is a priority for the administration. Sacks emphasized that the goal is to leverage stablecoins to reinforce the US dollar's dominance in global finance and potentially increase demand for US Treasurys, aiding in debt management and reducing long-term interest rates. An executive order signed by Trump details plans to promote dollar-backed stablecoins while ruling out central bank digital currency (CBDC) alternatives. Circle's USD Coin (USDC) is highlighted as a regulated US stablecoin, contrasting with Tether’s USDT, which has faced regulatory challenges internationally. Sacks mentioned USDC’s recognition in global markets, underlining its importance in regulatory discussions. The administration's intention to channel stablecoin innovations onshore indicates a significant shift in the regulatory landscape for digital currencies in the US.

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