Galaxy’s Head of Research Calls Stablecoin Bill Key to U.S. Dollar Dominance

In a series of public remarks, Thorn called on lawmakers—particularly Democrats—to propose reasonable compromises instead of “fundamental overhauls” if they genuinely want to see the bill pass. “Anyone who cares to see something passed should be hitting the phones all weekend,” he said. “Time is running out.”

More Than a Crypto Bill

Thorn emphasized that the GENIUS Act is not a “crypto bill” in the traditional sense. Rather, it is a strategic tool for reinforcing U.S. dollar dominance globally.

“It’s a ‘dollar dominance’ bill,” he noted, explaining that stablecoins have the power to “dollarize the smartphones of citizens worldwide,” even in countries where leadership is distancing from U.S. influence.

This comes at a time of growing geopolitical fragmentation, with China and Europe advancing centralized, surveillance-heavy CBDCs. Thorn argues that dollar-backed stablecoins, if designed correctly, can serve as a countervailing force, extending American financial influence without direct political involvement.

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Compete with China, Don’t Emulate It

A central theme in Thorn’s position is differentiation. While stablecoins already possess freeze-and-seize functionality, they must avoid the pitfalls of authoritarian digital currency models.

“There can’t be whitelists. Validators and nodes must be able to enter and exit permissionlessly,” he said. “They must compete with China, not emulate it.”

Fiscal Utility: Funding U.S. Debt

Highlighting a striking projection, Thorn referenced Bank of America’s estimate that stablecoins could drive $1.2 trillion in U.S. Treasury demand by 2030, effectively becoming the largest holders of U.S. debt. In an era of waning foreign demand for Treasuries, this would provide critical support for U.S. fiscal sustainability.

“Both parties should understand the need for new owners of U.S. debt,” Thorn added.

No Free Pass for Crypto

Critics often frame crypto legislation as overly favorable to the industry, but Thorn was clear: the GENIUS Act increases regulatory burden on stablecoin issuers, enforcing a strict federal standard with both prudential and consumer protections.

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“There’s no ‘handouts’ in this bill,” he stated. “It provides consumer safety and a pathway for growth and innovation.”

A Broader Warning

Thorn cautioned that if the GENIUS Act fails in the Senate, it will likely deal a blow to hopes for broader crypto market structure legislation—an outcome that could stall long-term innovation in the space.

And while he supports regulation for stablecoins, Thorn concluded with a reminder of first principles:

“If you want or need truly permissionless, unseizeable, non-sovereign store of value, Bitcoin is the answer.”

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