President Donald Trump used a private Saturday-evening event at Mar-a-Lago featuring boxer Mike Tyson and Tether CEO Paolo Ardoino to defend the crypto-friendly legislation his administration has championed, framing the package as "the financial Manhattan Project of the 21st century." The remarks, captured by Bloomberg from a leaked attendee recording, escalate the political battle over the GENIUS stablecoin bill and the Clarity Market Structure Act, both of which face crucial Senate votes in May.
Trump highlighted the rapid growth of the dollar-pegged stablecoin market — now $324 billion globally and dominated by Tether's USDT and Circle's USDC — as evidence that crypto policy is "the most under-appreciated economic story of the decade." He cited Treasury data showing that stablecoin issuers collectively held $186 billion of U.S. Treasury securities at the end of Q1, surpassing the official holdings of Brazil and Mexico combined.
GENIUS and Clarity Bills
The GENIUS Act, sponsored by Sens. Bill Hagerty (R-TN) and Kirsten Gillibrand (D-NY), would create a federal charter for payment stablecoins, mandate 1:1 reserves in U.S. Treasuries or qualifying short-duration assets, and require monthly attestation from a registered audit firm. Senate Banking Committee Chair Tim Scott has scheduled a floor vote for May 14, with passage probability tracked at 78% on Polymarket.
The Clarity Market Structure Act, championed by House Financial Services chair French Hill, would allocate jurisdiction between the SEC (digital securities) and CFTC (digital commodities) for the first time. The bill cleared the House in March on a 312-118 bipartisan vote and faces a CFTC reauthorization-tied Senate vote in late May.
The Tether Spotlight
Ardoino used the event to disclose that Tether's USDT supply crossed $234 billion this week, making it the world's 17th-largest holder of U.S. Treasuries and the largest non-sovereign holder. Tether reported $4.2 billion of net profit in Q1 — entirely attributable to Treasury yield income — versus $4.6 billion in all of 2024. The firm's effective tax rate, after relocating headquarters to El Salvador, is below 5%.