WASHINGTON—Today, United States Senator Bill Hagerty (R-TN), a member of the Senate Appropriations, Banking, and Foreign Relations Committees and former U.S. Ambassador to Japan, joined Varney & Co. on Fox Business to discuss President Donald Trump’s meeting on Capitol Hill on the budget reconciliation package, along with the GENIUS Act.
Partial Transcript
Hagerty on Trump’s meeting on Capitol Hill: “We’re watching what the president had to say coming out of the meeting. We’re very focused on this bill, making certain that it happens. But I’ll say this: a lot of the projections, a lot of the prognosticators are pointing to a growth in the deficit, revenue shortfalls, etc. I’ll take us back to 2017. If you think about what the Congressional Budget Office was saying, they were looking at a revenue decrease from President Trump’s 2017 Tax Cuts and Jobs Act. What happened? We actually had a revenue increase. They don’t capture the dynamics, as was mentioned before, tariff revenues, cost savings coming from the DOGE efforts and a lot of effort that’s going on within the agencies beyond DOGE. I think there’s a lot more to be captured here and the Senate is looking forward to getting our teams on this and looking for even more significant cuts than the House has delivered so far.”
Hagerty on moving forward on the GENIUS Act in the Senate: “I think we have broad agreement from a policy standpoint between Democrats and Republicans. We had a good evening last night, and I think there are actually a number of other folks that aren’t on the bill just yet that will become supportive of it. So, I feel very good about where we’re going. The momentum is very positive right now. All the feedback I’ve had since last night has been extremely positive. So, we’re going to be working at pace this week—we might even get it done this week—that would be great if we could.”
Hagerty on the GENIUS Act’s impact on the financial system: “It puts our financial system and our payment system more specifically into the modern times. What we rely upon today was designed in the seventies and eighties. This is a chance to completely modernize our payment system to make sure that the innovation that’s happening around the entire industry stays here in America. And importantly, the stablecoin is dollar-denominated, that will perpetuate the dollar’s position, dollar’s dominance as the reserve currency of the world. And it will also increase demand for treasury bills here in America, which is a good thing as well […] The stablecoin legislation requires that each dollar stablecoin be backed fully by either a dollar in cash or short-term treasuries. To do that, the stablecoin issuer has to go and purchase short-term treasuries. Already, stablecoin issuers are large owners of treasuries, and by 2030, Citi projects that stablecoin issuers will be the largest owner of U.S. treasuries in the world.”
Hagerty on the ability to buy stablecoins: “You’ll be able to [purchase stablecoins] almost instantaneously. And again, the payment system is there. We just need to give a legal framework for it to thrive here in America. Otherwise, we’ll see what’s been happening. It’s going to keep moving offshore. This is a better way for us to protect consumers, and it’s certainly a better way for us to make certain that America remains the hotbed of competition and innovation in this space […] If you think about it, this is great for dollar dominance as well. We’ve seen a slight erosion, but this is going to make certain that the dollar is the currency of choice around the world, because that’s where all the digital trading is going to go. And again, enhancing the demand for treasuries helps us, particularly at a time when we’re trying to work this deficit down.”
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