Dollar-backed stablecoins are coming soon
HalfDime
Posts: 389 ✭✭✭✭
- The GENIUS Act, formally titled the "Guiding and Establishing National Innovation for U.S. Stablecoins Act," is a landmark piece of U.S. legislation focused on regulating stablecoins—a type of cryptocurrency pegged to assets like the U.S. dollar. Passed by the Senate in June 2025, it represents the first major federal effort to set comprehensive standards for the issuance, management, and oversight of stablecoins in the United States.
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The act establishes federal rules for stablecoin issuers, requiring full reserve backing, regular audits, and compliance with anti-money laundering and anti-terrorism regulations.
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Only regulated entities, such as banks, fintech firms, and large retailers, can issue stablecoins, provided they meet strict reserve and reporting standards.
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The bill mandates that issuers hold sufficient reserves to cover all issued stablecoins and gives coin holders priority for repayment in the event of bankruptcy.
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The Treasury Department receives expanded authority to oversee the stablecoin market, with the goal of safeguarding the financial system and consumer interests.
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Since this will be pegged to the dollar I am not sure why they will use this. Maybe it is possible they peg it to other assets, depending on what the House passes.
Pegging it to gold would be a better stablecoin.
Comments
"stablecoin" <> "pegged to assets like the U.S. dollar"
Because the TechBros and administration can enrich themselves.
Knowledge is the enemy of fear
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I don't particularly care for it.
But it is exactly the type of thing that big banks want to do (and have done) "to enrich themselves" by issuing currency.
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Banks issue currency? You really need to get out of 1880.
And what's with the period 2 lines down after your comments?
Knowledge is the enemy of fear
https://www.msn.com/en-us/money/companies/jpmorgan-chase-files-for-blockchain-related-trademark-triggering-speculation-it-has-stablecoin-plans/ar-AA1GPThA?ocid=BingNewsSerp
Does the bill allow the Treasury to issue stablecoins? Seems like that has to be the end game.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
What is this nonsense? "The bill mandates that issuers hold sufficient reserves to cover all issued stablecoins and gives coin holders priority for repayment in the event of bankruptcy."
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The United States Treasury issued these (directly, not associated with a bank) :
Gold Certificates (yellow seal) - last issue was series of 1928;
Silver Certificates (blue seal) - last issue was series 1957-B;
United States Notes (red seal) - last issue was $100 series 1966-A.
Individual national banks issued National Currency (brown seal) - last issue was series 1929.
These were backed by the US Treasury, but issued by national banks.
The Federal Reserve Bank currently issues Federal Reserve Notes (green seal).
This one (center of image, below) says on it "Federal Reserve Bank of Kansas City Missouri".
They also state "Federal Reserve Note". A "note" (not the musical kind), is a debt instrument.
These Federal Reserve Notes are issued through Federal Reserve Banks.
They say "Bank" and "Note" and "Dollars" on them.
That makes them bank notes, also because they are issued by a bank.
It is all quite obvious.
Current Federal Reserve Notes do not have the word "Treasury" on them anywhere.
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PS:
You apparently need to read what is printed on the money in your wallet.
Nothing. There is literally nothing with it.
But if it makes you feel better, here you go:
..
So you're stuck in 1929. Another century to go...you can do it!!
I have no feelings but your addition of the period seems inefficient and inconsequential.....oh...I get it now. Haha
Knowledge is the enemy of fear
keep some peace you two
were you banned or put into the forum slammer RHB?
I seem to have stable coins sprouting out of the ground. Not sure why I need dollar backed ones....although I do love me some US dollars. RGDS! SMPR!!
P.S. anyone know when I can purchase the USMC privy ASEs? Shame they didn't issue them in the Au. THKS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
https://www.usmint.gov/product-schedule/2025/?prefn1=pastRelease&prefv1=false&start=0&sz=39
The Fall? Thanks. I better hold off on my Steeler Super Bowl tickets then. Time will tell. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
.
The currency in use today is issued by the Federal Reserve BANK, and not by the United States Treasury.
Your "1929" comment is a meaningless attempt at distraction (as usual).
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Doesn't that defeat the point of crypto?
God comes first in everything I do. I’m dedicated to serving Him with my whole life. Coin collecting is just a hobby—but even in that, I seek to honor Him. ✝️
No, pegging crypto to a dollar doesn’t defeat the point—it redefines the use case. Not all crypto is trying to be Bitcoin. Some are just trying to make money move better. From Chat GPT
🧱1. Original Philosophy of Crypto
The Vision:
The original purpose of Bitcoin (and crypto broadly) was:
Decentralization of money
Trustless systems (no need for banks or governments)
Inflation resistance
Self-sovereignty over assets and identity
Alternative to fiat systems that are prone to manipulation or collapse
From that standpoint, pegging a token to a fiat currency like the U.S. dollar reintroduces the very centralization and fiat-dependence that crypto aimed to eliminate. You're back to trusting:
The Federal Reserve (to manage the dollar)
The issuer of the stablecoin (to maintain the peg and not rug-pull)
So in that sense, yes—it contradicts the ideological roots.
💳 2. The Practical Utility of Stablecoins
Despite that contradiction, stablecoins solve real-world problems for individuals, businesses, and developers:
A. Stability for Commerce
Volatile cryptos (BTC, ETH) are hard to use in commerce or payroll.
Stablecoins give you crypto-like speed, settlement, and borderless access without the price volatility.
B. Onboarding New Users
A user in Argentina or Nigeria might want USD exposure without needing a U.S. bank account.
Stablecoins offer access to a stable currency via decentralized or mobile-first apps.
C. Liquidity for DeFi
Most DeFi protocols rely heavily on stablecoin liquidity pools.
Users can borrow, lend, stake, or trade without worrying about wild price swings.
D. Bridge Between TradFi and DeFi
Visa, PayPal, Stripe, and Circle all use stablecoins to settle payments, remittances, and B2B transfers.
They act as a transitional tool toward a more tokenized financial infrastructure.
🔀 3. Different Types of Crypto Serve Different Purposes
Crypto Type Purpose Pegged?
Bitcoin (BTC) Store of value, hedge against fiat ❌ No
Ethereum (ETH) Smart contracts and app execution ❌ No
Stablecoins (USDC, USDT) Price-stable medium of exchange ✅ Yes (to USD)
Utility Tokens Fuel for networks (e.g., Chainlink, Filecoin) ❌ Generally not
CBDCs Government-issued digital fiat ✅ By design
🔍 4. So What's the Point of Stablecoin Crypto?
Stablecoins aren't trying to replace fiat—they’re trying to:
Modernize the way fiat moves
Unbundle banking and payments
Offer programmable, portable, and censorship-resistant dollars
Act as a bridge into crypto ecosystems, especially for those not ready to use volatile assets
In a way, they make crypto usable for the average person or business—which is arguably a necessary compromise on the road to broader adoption.
Track and tax or collect fees on every transaction.
Implement social credit scoring.
etc, etc...
I knew it would happen.
As of early 2023, there have been at least 23 stablecoins that have lost their peg and failed to recover for months, effectively making them "failed" stablecoins according to a widely cited industry list. While not every failed stablecoin may have reached a price of exactly zero, many—such as Terra’s UST, Iron Titanium (TITAN), and others—have suffered catastrophic collapses where their market value plummeted to near-zero or was completely wiped out.
Yes, compared to how crypto was originally conceived. As I posted above many "stablecoins" have crashed completely.
Maybe those should be called fable-coins now.
I would rather have a USD than something ‘pegged’ to the USD.
Its just a solution looking for a problem.
Knowledge is the enemy of fear
JPMorgan Chase CEO Jamie Dimon says he doesn’t get the appeal of stablecoins, but he also can’t afford to stay on the sidelines.
Last month, JPMorgan announced it will launch a more limited version of a stablecoin that only works for JPMorgan clients; a true stablecoin would presumably be more universally accepted.
“We’re going to be involved in both JPMorgan deposit coin and stablecoins to understand it, to be good at it,” Dimon said.
Citigroup and Bank of America executives have also said they would get involved.
The vote on the Genius act happens either tomorrow or Thursday.
The US Dollar isn't stable in the first place, so please explain how a fiat coin based on the dollar becomes more "stable".
This smacks of the same rationale that every tranche of derivative contracts consisting of garbage bond holdings in the 2008 financial fiasco somehow became AAA Rated
It's a bridge to cbdc, nothing more.
I knew it would happen.
You won't like this answer, but here it is:
People are buying stablecoins for several key reasons:
Avoiding crypto volatility: Stablecoins are pegged to fiat currencies like the US dollar, so they don't experience the wild price swings seen in cryptocurrencies like Bitcoin and Ethereum. This stability makes them attractive for those who want to stay in crypto markets without risking major losses due to market fluctuations.
Convenience for trading: Traders use stablecoins to move in and out of different cryptocurrencies easily, acting as a "safe haven" during market instability. They can quickly buy or sell assets without converting funds back to regular money through banks, which can be slow and costly.
Cross-border payments and remittances: Because stablecoins can be sent worldwide within minutes and often at much lower fees than traditional methods, they are popular for sending money internationally and for remittances to countries with weaker or less stable currencies.
Protection against local currency inflation: In countries dealing with high inflation or unstable local currencies (such as Argentina or Turkey), people use stablecoins to protect their savings from losing value, essentially using dollars or other stable assets in digital form.
Access to decentralized finance (DeFi): Stablecoins provide an easy entry and exit point to DeFi services. Many people use them for lending, borrowing, and earning interest, which would be riskier with volatile cryptocurrencies. Some platforms have offered yields several times higher than traditional banks for holding or staking stablecoins.
Avoiding traditional banking systems: Some buyers prefer not to use banks for trading or payments, either for privacy, regulatory avoidance, or convenience. Stablecoins allow users to transact directly on the blockchain, bypassing conventional financial intermediaries.
Faster and cheaper transactions: Transferring stablecoins is typically quicker and less expensive than bank transfers, especially for cross-border dealings .
Stablecoins offer a combination of stability, convenience, and efficiency for both traders and everyday users, making them one of the most widely used digital assets in the cryptocurrency world today.
These will be interesting to see how they turn out.
You won't like this answer, but here it is:
No problem, I don't have to like the answer, however.......
With major banks implementing them, stablecoins aren't a way of transacting outside of the banking system, and there isn't any more expectation of privacy with stablecoins than there is with crypto. There is no bypassing the banks if they are the ones issuing this stuff.
It's simply another attempt by the banks to gain leverage at everyone else's expense. Leverage. Think about it. Same thing that Kissinger did with the petrodollar. Leverage and control.
Did your reply come directly from Grok? Martin Armstrong has something to say about language-based AI, and it's not that complimentary.
From Martin's website:
British Journal of Educational Technology (BJET) recently explained that “no research has yet examined how epistemic beliefs and metacognitive accuracy affect students’ actual use of ChatGPT-generated content, which often contains factual inaccuracies. ” For those unfamiliar with this arcane term of philosophy, linguistics, and rhetoric, epistemic, it traces back to the knowledge of the Greeks. That Greek word is from the verb epistanai, meaning “to know or understand.”
I try to be accurate, and if I state something as fact, I have generally verified it versus making a statement of just an “opinion,” perhaps derived from a belief. Nobody is perfect – not even ChatGPT.
I knew it would happen.
The stablecoin transactions will be running on a blockchain that the banks don't control. So yes it is happening outside of the banking system, it is actually happening on the blockchain itself (A blockchain will run on Ethereum or Solana for example). This dollar pegged stablecoins are only the beginning, they will be adding other commodity stablecoins pegged to gold and silver at some point. So someone who has a bank account will be able to instantly sell the dollar stablecoin and buy a gold stablecoin. The gold stablecoin may represent one coin pegged to one one troy ounce of gold.
This is the future. I didn't believe in Bitcoin, and still don't as it has little useful value (Litecoin has done nothing and it is similar to bitcoin). The crypto that runs stablecoins though has incredible value by comparison. It gets paid for every transaction, and is similar to a bank in that those who own the most and stake it, get paid a return for doing it. This is the start of the real digital banking age in the US. It starts with legislation this week.
Legislation didn’t pass this afternoon.
And there is no guarantee the fees won’t creep up over time, like most other charges.
I don't agree with this statement at all. Letting private companies issue stable coins tied to the dollar, gold, silver or ?prevents the government from being the only game in town. There are things to work out and yes there will be some scams, but like it or not, crypto is here and will be a settlement option.
Go look at what happened after cars were invented. A few years later folks wanted to go back to horses because that is what they knew. Can't image going to the store on a horse now.
i vote creep up
Letting private companies issue stable coins tied to the dollar, gold, silver or ?prevents the government from being the only game in town.
It's just a Trojan Horse. The language in the bill hasn't been finalized and there's every reason to believe that gov.com will require full disclosure of personal transactions to gov.com via regulations, once implemented. That circumvents any pronouncement, executive order or even any legislation that prohibits a cbdc or government-run crypto currency.
Massey is trying to get language into the bill that guarantees privacy, but we all know what happens after any legislation gets passed. It always gets twisted around to the advantage of the banks and gov.com.
Go look at what happened after cars were invented. A few years later folks wanted to go back to horses because that is what they knew. Can't image going to the store on a horse now.
I'm sure that the Canadian truckers never expected to have their bank accounts frozen.
I'm also sure that there's no stopping this, but that doesn't mean you should embrace everything that has unforeseen consequences. There's no analogy to horses here.........well maybe there is, after all. The auto insurance companies want to track your driving and Onstar does that as well.
Will you enjoy being tracked minute by minute by big brother? Do you even know who George Orwell was?
I knew it would happen.
I don't want to be tracked, however that ship has sailed. Do you own a cell phone, you can be tracked. I cannot drive in any city or across the Commonwealth without being tracked (turnpike tracks you at every exit now. I'm not saying I like it but also don't have my head in the sand. I was where you were not long ago. I decided to learn more about the new technologies, and it has benefited me.
Regarding cryptos, having private to me is much better than a CBDC. I own gold and silver, that said the real money will be made investing in the next industrial revolution that is going on and we are in the "early innings."
@jmski52 said:
If you are talking about the genius act then it has been finalized, and they will vote on exactly what came out of the senate.
It sounds like is should easily pass today and be signed into law.
Stablecoin bill update: It appears to have passed the house, all they need to do is record the votes later today, then it will be signed into law.
The concern now is that this could delve into digitizing all currency and creating a CBDC.
The enacted legislation is intended to grant government unlimited control over how people spend stablecoins.
It specifically provides the government with the authority to “block, freeze, and reject specific or impermissible transactions.” Scary once stablecoin becomes the much desired (by your gov) version of the greatly feared (by the consumer) central bank digital currency (CBDC).
"Too big a carbon footprint? No more gasoline for you this month."
"No more gun purchases for you, you've reached the limit."
No Way Out: Stimulus and Money Printing Are the Only Path Left
I love all CoiNz. Bring em.
What you suggest is already possible with your debit and credit cards. Heh, half the places I go don't even want cash anymore. It's already here. Plan accordingly is all I can say. THKS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Not as long as I have the 'cash' option. CBDCs are designed to fully replace cash. No Cash? you are then at the mercy of digital controls.
Like gold, cash (as long as it is legal) will always provide an alternative. As with the guns in your closet, the cash under your mattress will always keep you from being controlled.
No Way Out: Stimulus and Money Printing Are the Only Path Left
In January 2025, the President signed an executive order fundamentally shifting U.S. policy on central bank digital currencies (CBDCs) and digital assets.
CBDC Ban
Federal agencies are explicitly prohibited from taking any action to create, issue, or promote a CBDC within the United States or abroad.
Any current or planned federal CBDC initiatives must be immediately terminated.
The policy reflects concerns about privacy, government control over financial transactions, and the potential risks to financial stability and sovereignty .
Revocation of Previous Orders
The order revokes 2022 Executive Order 14067—“Ensuring Responsible Development of Digital Assets”—as well as related Treasury Department frameworks that guided digital asset regulation under the previous administration.
thing can be changed and executive orders are very easily changed
Gotta give the tech bros what they paid for.
Knowledge is the enemy of fear
and promises can be broken
No Way Out: Stimulus and Money Printing Are the Only Path Left
You can always stick to fiat currency and burn it if you ever get cold like they did in the movies.
Signed into law today.
Stable coins will not be backed by dollars, they will be back by US Treasuries. They are a new way to sell US debt and a new way to control consumer spending.
Martin Armstrong: “This is really a repeat of 1863. In the Civil War, they issued national bank notes. The banks were told to buy the bonds. They could buy bonds to fund the war, and they were allowed to issue currency backed by the bonds. This is the same exact thing. These stablecoins are the same thing as the 1863 National Bank Act.”
In the face of losing foreign buyers, it's always good to have a new buyer of US debt. LOL
No Way Out: Stimulus and Money Printing Are the Only Path Left
Backed by US Treasuries that are becoming hard to sell. A place to stuff T-Bonds when nobody wants them. Another shell game. Martin Armstrong is 100% correct.
I knew it would happen.
Armstrong:
"This new legislation prevents the Federal Reserve from creating a CBDC, but the US Fed was never pushing for this measure. CBDC is not an American idea. The Fed actually resisted the concept, and Trump has been against the creation as well. But the BIS and the European banking elites are the ones pushing this agenda due to the (worldwide) sovereign debt crisis. The idea is to trap capital to control the inevitable collapse by converting to a digital system. The day may come when the Fed is forced to comply, as we live in a global economy, and the BIS, IMF, and Davos elite are actively working to end banking as we have known it."
No Way Out: Stimulus and Money Printing Are the Only Path Left
I watched "The Big Short" last night. That should be required viewing for anyone thinking about ever using stablecoin.
I knew it would happen.
Can stablecoins be used to buy coins on the BST Forum?
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire