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I just hope that no one is inferring that Trump is doing this because he is the presidential king of crypto currency. Do people really believe that this will put tens of millions in Trump's pocket ?

I don't think so. I think he did this to help working and middle class families.

Can we just get back to Hunter paying Sleepy Joe $12,000 in order to pay back the loan he gave him to make car payments ?
 
nycfan said:
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“… The U.S. GENIUS Act—short for Guiding and Establishing National Innovation for U.S. Stablecoins—formalizes this transformation of money by creating a framework for regulated U.S. banks to issue dollar-backed stablecoins: digital tokens designed to reliably trade near their $1 par value because they are backed by real dollars or safe assets held in reserve.

These tokens can move instantly across the internet, often bypassing the traditional banking system and its know-your-customer rules. Many operate on decentralized blockchains where transactions are recorded on public ledgers maintained by distributed computer networks that span the globe—beyond the practical reach of any sovereign authority.

This removes the biggest obstacle holding back the development of stablecoins: the lack of a fully credible peg. Historically, stablecoin issuers lacked the financial wherewithal to credibly maintain their peg to the U.S. dollar and had no liquidity support from the U.S. Federal Reserve, unlike banks. As a result, stablecoins rarely lived up to their moniker: Several collapsed outright, while others have frequently depegged, trading below their $1 par value during periods of volatility.

Yet with banks potentially guaranteeing 1:1 redemption of stablecoins for dollars, these tokens would become functionally equivalent to other financial assets, such as time deposits or commercial paper, that are already recognized “cash equivalents” under international accounting standards. The largest U.S. banks are already working on plans to issue stablecoins….”
 
nycfan said:
“… The U.S. GENIUS Act—short for Guiding and Establishing National Innovation for U.S. Stablecoins—formalizes this transformation of money by creating a framework for regulated U.S. banks to issue dollar-backed stablecoins: digital tokens designed to reliably trade near their $1 par value because they are backed by real dollars or safe assets held in reserve.

These tokens can move instantly across the internet, often bypassing the traditional banking system and its know-your-customer rules. Many operate on decentralized blockchains where transactions are recorded on public ledgers maintained by distributed computer networks that span the globe—beyond the practical reach of any sovereign authority.

This removes the biggest obstacle holding back the development of stablecoins: the lack of a fully credible peg. Historically, stablecoin issuers lacked the financial wherewithal to credibly maintain their peg to the U.S. dollar and had no liquidity support from the U.S. Federal Reserve, unlike banks. As a result, stablecoins rarely lived up to their moniker: Several collapsed outright, while others have frequently depegged, trading below their $1 par value during periods of volatility.

Yet with banks potentially guaranteeing 1:1 redemption of stablecoins for dollars, these tokens would become functionally equivalent to other financial assets, such as time deposits or commercial paper, that are already recognized “cash equivalents” under international accounting standards. The largest U.S. banks are already working on plans to issue stablecoins….”
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“…
China’s leadership views these developments with considerable apprehension—and for good reason. Bank-issued dollar stablecoins present a powerful use case as an infinitely divisible, programmable form of digital money that combines the dollar’s core strength—global liquidity—with the security and anonymity of blockchain-based ownership, akin to holding physical gold.

… The result is a new channel for transacting in dollars that the Chinese state cannot fully monitor, throttle, or shut down.

From the perspective of the Chinese Communist Party (CCP), dollar stablecoins are not just a potentially disruptive economic issue but also a political threat.

One of the pillars of the party’s political power is its ability to control the flow of money and preferentially allocate capital using China’s system of financial repression. The architecture of this system relies on strict capital controls to hold the capital of the Chinese people captive and funnel it into state-owned banks.

If the government can no longer effectively police access to foreign currency, then capital will steadily leak out, and the whole system of ensuring the loyalty of China’s elites to the CCP by selectively granting them access to cheap capital will break down.

… China’s export-oriented business community would likely be receptive to using bank-issued dollar stablecoins because of their potential to lower international transaction costs. It is conceivable that after gaining traction among businesses, dollar stablecoins could begin to displace the yuan in more everyday transactions—just as printed U.S. dollars already circulate widely in parts of Latin America.

While the loss of monetary sovereignty in China may seem like a distant threat, it is nonetheless an existential one—and the CCP knows it.…”
 
nycfan said:
“…
China’s leadership views these developments with considerable apprehension—and for good reason. Bank-issued dollar stablecoins present a powerful use case as an infinitely divisible, programmable form of digital money that combines the dollar’s core strength—global liquidity—with the security and anonymity of blockchain-based ownership, akin to holding physical gold.

… The result is a new channel for transacting in dollars that the Chinese state cannot fully monitor, throttle, or shut down.

From the perspective of the Chinese Communist Party (CCP), dollar stablecoins are not just a potentially disruptive economic issue but also a political threat.

One of the pillars of the party’s political power is its ability to control the flow of money and preferentially allocate capital using China’s system of financial repression. The architecture of this system relies on strict capital controls to hold the capital of the Chinese people captive and funnel it into state-owned banks.

If the government can no longer effectively police access to foreign currency, then capital will steadily leak out, and the whole system of ensuring the loyalty of China’s elites to the CCP by selectively granting them access to cheap capital will break down.

… China’s export-oriented business community would likely be receptive to using bank-issued dollar stablecoins because of their potential to lower international transaction costs. It is conceivable that after gaining traction among businesses, dollar stablecoins could begin to displace the yuan in more everyday transactions—just as printed U.S. dollars already circulate widely in parts of Latin America.

While the loss of monetary sovereignty in China may seem like a distant threat, it is nonetheless an existential one—and the CCP knows it.…”
Click to expand...
“… In May, Hong Kong’s Legislative Council passed the landmark Stablecoins Bill, allowing licensed entities to issue fiat-backed stablecoins, including those pegged to the Hong Kong dollar (itself pegged to the U.S. dollar) and the offshore renminbi (CNH). Oversight, licensing, and audits fall under the authority of the Hong Kong Monetary Authority.

Hong Kong serves as China’s financial laboratory: It is legally distinct yet politically aligned, globally integrated yet institutionally loyal. While mainland regulators have not publicly endorsed the new framework, it is implausible that such a move could occur without Beijing’s approval.

By permitting CNH-based stablecoin trials in Hong Kong, Chinese authorities can explore tokenized renminbi circulation offshore while keeping mainland capital controls intact.

A renminbi-backed stablecoin would likely be fully traceable, linked to China’s digital ID system with real-name verification and facial recognition, enabling authorities to monitor every transaction in real time.

While this strengthens anti-money laundering efforts, it also poses risks of pervasive financial surveillance. At best, it allows precise macroeconomic policy; at worst, it becomes a tool for enforcing political discipline and restricting undesirable economic behavior.

For Beijing, blockchain’s value lies not in decentralization but in using code to refine state control. In this model, money is more than a medium of exchange; it becomes an instrument for implementing government policy and exercising social control.

The programmability of stablecoins could allow Chinese authorities to embed usage restrictions directly into the currency itself. Features already tested in the e-CNY—such as expiration dates, sector-specific spending limits, and geographic limitations—could be adapted to serve government objectives.

Moreover, geofencing could limit circulation of an offshore renminbi stablecoin to only licensed zones, such as Hong Kong and other financial centers, with transaction limits and user eligibility hard-coded on the blockchain. This would preserve China’s capital controls while allowing the stablecoin to circulate globally. Unlike the e-CNY, which remains primarily domestic despite ambitionsfor international use, an offshore stablecoin pegged to CNH could extend China’s global financial reach without exposing its capital account to outflow risks.

Momentum is growing among scholars and companies advocating that Beijing authorize a renminbi-backed stablecoin to proactively counter the influence of dollar stablecoins….”
 
In my ongoing effort to give Trump credit when it's occasionally due, this appears to me to be a pretty good and important new law. Perhaps because it's not really partisan, it looks like everyone pulled together to get this one done, so credit all around.
 
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