President Donald Trump’s advisor on crypto and artificial intelligence (AI), David Sacks, is highlighting a catalyst that could dramatically increase demand for US treasuries.

In a new Bloomberg interview, Sacks says the passing of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) in the U.S. Senate and the potential signing of the piece of legislation into law offers “regulatory clarity and stability” for the stablecoin crypto sector.

According to Sacks, the GENIUS Act could trigger massive demand for US government debt from various parts of the world.

“… the [stablecoin] float is expected to grow from, call it, roughly $250 billion to trillions of dollars. And that would create more demand for the US dollar internationally. I think you could see other economies start to dollarize from the bottom up as their citizens would prefer to use US digital dollars as opposed to whatever fiat currency they’re using. And that would create potentially trillions of dollars of new demand for US treasuries.”

The GENIUS Act will also spur innovation in the payments industry, according to the White House advisor.

“And I think that the bill will provide the framework that will give confidence to a lot of traditional financial players to enter the space. And so I think you’re going to see new stablecoin products. And I think you will also see stablecoins being used as payments. I think this is one of the really exciting things about the bill, is that blockchain infrastructure will be used as a new kind of dollar-based payment system, that’s faster, more efficient, smoother. It’s a payment system of the future.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Many sports fans may know David Tepper as the owner of the NFL’s Carolina Panthers. But in the investing world, Tepper is considered a legend. Between 1993 and 2019, Tepper’s fund, Appaloosa Management, generated compound annual returns of more than 25% per year, net of all fees, according to Institutional Investor. Today, Tepper still runs Appaloosa but as a family office, and he’s still arguably one of the most influential investors in the market. In the first quarter of 2025, filings show that Appaloosa more than halved its position in the artificial intelligence (AI) chip giant Nvidia (NVDA -1.02%), while loading up on a market-beating transportation stock instead.

Reading the tea leaves on Nvidia

Like many stocks in 2025, Nvidia has had an up-and-down year. It sold off intensely but then rebounded and is currently down only 2% for the year. Earlier in 2025, there were many concerning events that could have caused investors to press the sell button.

Image source: Getty Images.

The first occurred after China’s DeepSeek created an artificial intelligence chatbot rivaling OpenAI’s ChatGPT, supposedly at a fraction of the cost and with older Nvidia chips. Now, there’s much dispute about the level of resources that went into DeepSeek but it caused investors to worry about demand for Nvidia’s chips and whether or not more in the AI world could be done with less.

Then there were concerns about export restrictions and how that might impact Nvidia’s business in China. Former President Joe Biden’s administration began to limit the types of chips Nvidia could sell to China, in an effort to prevent China from obtaining semiconductors it could use to build a super computer. Those restrictions ramped up and the Biden administration also tried to close loopholes by preventing Nvidia from selling certain chips to other countries that could then sell them to China. The Trump administration plans to remove some of the Biden-era policies but also implemented its own restrictions that caused Nvidia to take a $5.5 billion charge in the first quarter of the year.

While there is still broader market uncertainty, particularly as U.S. Treasury yields surged, investors seem to have renewed faith in AI demand and Nvidia currently trades at a cheaper forward earnings multiple than earlier this year, so it’s not a bad time for long-term oriented buyers to buy shares or start dollar-cost averaging again.

NVDA PE Ratio (Forward) data by YCharts

A ride-sharing company with autonomous potential

While selling Nvidia, Tepper and Appaloosa more than doubled their position in the ride-sharing company Uber Technologies (UBER -0.16%). Uber was one of the most highly touted start-ups, but struggled to turn a profit for many years. In 2017, the company brought on Dara Khosrowshahi, who has focused less on growth and more on improving operations.

Through a mixture of cost-cutting, price increases, exiting difficult markets like China, and a focus on growing profitable businesses like Uber Eats, Uber managed to turn its first profit in 2023. Since then, profits and revenue continued to grow and the company has also been increasing free cash flow. The stock has crushed the broader market this year and over the last five years.

UBER data by YCharts

Uber also has an opportunity to be a part of the autonomous vehicle wave. While the company will not build its own self-driving vehicles, it does plan to partner with companies in the autonomous space to help them reach commercialization and integrate autonomous vehicles into Uber’s fleet. In a presentation made in the fourth quarter of 2024, management presented the autonomous space as more than a $1 trillion opportunity.

The company said that the path to commercialization for companies developing self-driving vehicles faces several obstacles. These include navigating the regulatory landscape, ensuring safety, and having a scalable network and platform. Uber can help on all of these fronts and has already partnered with several large autonomous companies like Waymo and WeRide. Earlier this month, Uber and WeRide announce an expansion of their partnership to roll out autonomous vehicles in 15 cities across the world.

Trading at less than 25 times forward earnings, Uber has the opportunity to continue improving profitability and free cash flow, while also potentially tapping into the massive autonomous market over time, presenting a potential new stream of revenue.

Meta’s launch of two artificial intelligence (AI) Llama 4 models has positioned the U.S. as a leader in the AI race, David Sacks, the U.S. AI and crypto czar, said in an X post on Saturday. He wrote:

“For the U.S. to win the AI race, we have to win in open source too, and Llama 4 puts us back in the lead.”

On April 6, Meta announced the launch of its fourth-generation open-source Llama 4 models — Llama 4 Scout and Llama 4 Maverick.

The AI race intensified with the launch of Deepseek

DeepSeek, a Chinese AI startup founded in 2023, launched its first model in December 2024. In January 2025, it launched a chatbot that claimed to rival the capabilities of OpenAI’s ChatGPT.

Downloads of DeepSeek’s generative AI, DeepSeek R1, topped the charts of app stores. It shook the world’s primary assumption: Hefty investments and expensive chips are the only way to get ahead in the AI game.

As a result, the stock prices of U.S. tech companies like Nvidia suffered losses following DeepSeek R1’s launch.

This is because Deepseek claimed to have spent approximately $6 million to train its AI model. On the other hand, OpenAI reportedly spent around $100 million to train ChatGPT-4.

While venture capitalist Marc Andreessen called DeepSeek’s R1 launch “AI’s Sputnik moment,” U.S. President Donald J Trump called it a “wake-up call” for American firms.

Since then, U.S. firms have been trying to leapfrog in the AI race, and according to Sacks, who has been a vocal proponent of AI, Llama 4 has been the key.

Meta claims Llama 4 models are “best in their class”

Meta claims that the Llama 4 models are their “most advanced models yet” and also “best in their class for multimodality.” Both models are currently available for download and use on Meta applications like WhatsApp and Instagram.

Multimodal AI systems are capable of processing various types of data — text, image, audio, and video — simultaneously. This enables the AI to comprehend complex scenarios and generate comprehensive responses.

Llama 4 Scout and Llama 4 Maverick are the first open-source Meta AI models built using a mixture of experts (MoE) architecture. In an MoE, multiple smaller models or specialized experts collaborate to make the larger AI model work. This means that experts focus on solving the parts of the problem they are designed to handle.

Llama 4 Scout has 17 billion active parameters and 16 experts. Llama 4 Maverick has the same number of parameters but is designed with 128 experts. While the former can fit in a single NVIDIA H100 GPU, the latter requires an H100 host.

Meta claims that Llama 4 Scout outperforms Gemma 3, Gemini 2.0 Flash-Lite, and Mistral 3.1 across a broad range of widely reported benchmarks.

Llama 4 Maverick, on the other hand, provides results comparable to DeepSeek v3 on reasoning and coding despite having less than half the active parameters. Meta also asserts that Llama 4 Maverick beats GPT-4o and Gemini 2.0 Flash across a number of benchmarks.

Furthermore, according to Meta’s testing, Llama 4 “responds with strong political lean at a rate comparable to Grok.”

Meta also unveiled Llama 4 Behemoth, which is still in training, as one of the “world’s smartest” large language models (LLMs).

Meta launched its first Llama model in February 2023.

Mentioned in this article

David Sacks unloaded hundreds of millions of dollars worth of digital asset-related investments prior to starting his job as the Trump administration’s artificial intelligence (AI) and crypto czar.

According to a White House memo issued by Presidential Counsel David A. Warrington, Sacks and his investment firm Craft Ventures liquidated their crypto holdings, including Bitcoin (BTC), Ethereum (ETH) and Solana (SOL), before Trump started his second term on January 20th.

Sacks also sold his position in the Bitwise 10 Crypto Index Fund (BITW) and unloaded his shares in Coinbase (COIN), Robinhood (HOOD) and private digital asset companies as well as limited partner interests in crypto-focused investment funds, including Multicoin Capital and Blockchain Capital.

The White House adds that Sacks started to sell his limited partner interests in roughly 90 venture capital funds “out of an abundance of caution” as the firms may choose to invest in the digital asset industry.

Warrington says Sacks and Craft Ventures disposed of over $200 million worth of investments in the digital asset industry, including at least $85 million personally held by Sacks, in a bid to protect the integrity of his position as special advisor for crypto.

“Crucially, you have already taken significant steps to minimize potential conflicts of interest due to digital asset holdings – divesting from hundreds of millions of dollars in digital assets or digital asset-related industry entities.”

While Sacks has either liquidated or is in the process of unloading his remaining exposure to the digital asset industry, the memo notes that Craft Ventures still has interests in crypto-related firms, including the token management platform BitGo, proof-of-space and proof-of-time blockchain Chia Network and blockchain-based gaming developer Dapper Labs.

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The Trump Administration’s Crypto Czar says the US could gobble up more Bitcoin (BTC) to add to its upcoming strategic reserve.

In a new interview on the All-In Podcast, renowned venture capitalist and Crypto Czar David Sacks says that the government would be allowed to purchase more of the top crypto asset by market cap to add to its strategic reserve if certain budgetary conditions are met.

“I’m talking about Treasury and Commerce – they’re allowed to figure out strategies to accumulate more Bitcoin for the reserve if those strategies are budget neutral and don’t cost the taxpayer anything. So it’s possible that we could, I’m not saying that we will, but it authorizes them to acquire more Bitcoin if they can figure out a way to do it that doesn’t impact the federal budget or the deficit or taxpayers.”

Last week, President Donald Trump signed an executive order (EO) creating a strategic Bitcoin and crypto reserve. The EO establishes a national BTC and crypto asset stockpile by holding digital assets seized from criminal activities rather than auctioning them off as had been previous practice.

Also last week, Sacks revealed that the US Federal Government lost out on tens of billions of dollars in Bitcoin growth by previously selling some of the BTC it had in its possession. As stated by Sacks at the time,

“If the government had held the Bitcoin, it would be worth over $17 billion today. That’s how much it has cost American taxpayers not to have a long-term strategy.”

According to data from market intelligence firm Arkham, the Federal government currently holds about $16.4 billion worth of the flagship digital asset.

Bitcoin is trading for $82,524 at time of writing, a 3.2% decrease on the day.

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White House crypto and AI czar David Sacks rejected the idea of taxes on each cryptocurrency transaction as a method of filling the US strategic Bitcoin (BTC) reserve and the crypto stockpile with digital assets.

During a recent appearance on the All In podcast, host Jason Calacanis proposed charging a 0.01% tax on every cryptocurrency transaction, which would be denominated in the asset that is transferred, bought, or sold. Sacks responded:

“That’s always how taxes start. They are described as being very modest. You know, when the income tax started, it only applied to like a thousand Americans, and the legislators swore up and down that it would never be applied to middle-class people.”

“So, I don’t particularly like the idea of new taxes, even if it is promised that they won’t affect people very much. That sounds burdensome to me,” Sacks continued.

Crypto investors were highly critical of the idea, which would also tax transfers of assets between wallets owned by the same person.

The recent White House Crypto Summit made no mention of concrete tax policies. However, the Trump administration has signaled its support for sweeping tax reform at the federal level.

Related: US will use stablecoins to ensure dollar hegemony — Scott Bessent

President Trump proposes eliminating income tax and Internal Revenue Service

President Donald Trump previously proposed eliminating the federal income tax and replacing the income tax revenue with tariffs on imported goods.

Trump said the United States federal government was funded exclusively by tariffs in the 19th century and argued that it was a time of almost unparalleled prosperity for the country.

Howard Lutnick, the commerce secretary of the US, reiterated the proposal and said that the Internal Revenue Service (IRS) would be replaced by an “External Revenue Service.”

According to research from accounting automation company Dancing Numbers, the Trump administration’s plan to replace revenues from federal income taxes could save each American taxpayer at least $134,809.

The company added that the lifetime savings could be extended to as much as $325,561 per person if state-income taxes are also repealed.

Magazine: How crypto laws are changing across the world in 2025