The Most Important Week In Crypto History And Potentially Modern Financial History

Added: 2026-05-15

[00:00:01]Hey guys, how are we doing? Crypto Insight UK here bringing you back another video. So, I actually think this week could be one of the biggest weeks in the history of crypto, but also in maybe the history of modern finance as well. And I know that this is a big statement, but I do feel like everything that's been like bubbling so far is kind of like maybe culminating this week and and coming to some sort of conclusion.

[00:00:26]Now, this it doesn't mean that what I'm about to talk to you about is right. I'm just going to lay out a thesis for why I think it could be so important. Excuse me. Again, I also don't know what the outcomes are. There's a million different potential scenarios and different pieces pushing into this jigsaw puzzle. And there's a lot of different scenarios that could play out from here. First off, I want to say there's been a lot going on with crypto in the last like week or two. There's a lot of activity. you're seeing some altcoins really break out. Sooie, ono, um, ton and others. And I do think if you want to understand my TA on this to please go and check my weekly newsletter, the weekly insight.substack.com. I broke out I broke down like what I'm thinking. Uh, talked about funding and technical analysis and liquidity and XRP, etc. But I'm going to spend today's video talking about stable coins and the impact that they're going to have potentially on the crypto market and the world generally and why I think this week is so important.

[00:01:28]So there's a few things because there's a few major things happening this week and look this is all my personal perspective. I started writing about this about this and having thoughts about this in mid 2025. You can see here like my stable coin thesis first I first wrote it in 2025 had 79,000 views and the first time that I tweeted about it and this was look June June the 4th 25 and I have my thoughts before this but didn't really get them down on paper and the reason I'm doing this now is because I want to give you my overview of what I think is important right now and what I think is actually going on and again look I'm just some guy on the internet I don't know I'm not got the experience of hundreds of years of macro I don't have the experience of 20 years of macro. I have the experience of 10 years of playing around in the crypto space trying to learn as best I can, trying to give that information I learned to other people um and trying to piece the pieces together from what I would from where I tried to be the most neutral but also have bias from my own investments of course as everybody does and and and that bias might start from you invest um with without bias thinking it's a it's a it's a good investment and then over time you obviously research the investment that you make more. You've made more. You continue to research and that I I think can can create bias. Um, but let me just discuss this because I think it's so important. Like, and there's so genuinely so much going on here. Going to try and break down as much as I can as quick as I can. And first off, as I said, let's talk about stable coins. Now, I'm not going to talk about all the different aspects of stable coins because I think that they're a really deep and long topic. I could do an hour video actually, I think, on on stable coins generally. But before this week happens, I want to get these thoughts out there. So, what's inspired me to do this is last night I was sitting discussing with my sister and just giving her my opinion. Again, I could be wrong. Like, I don't know what the future holds. I don't know for sure if what I'm saying is true, but I think it makes sense to me. Okay, so we've already had uh the Genius Act passed and this week, I think the 14th of May, um there's potential for the market by the Senate of the Clarity Act. Now, why is this important? Well, Genius Act basically allows um institutions to use stable coins essentially. That's that's that's the the crux of it. And then as far as I understand, the Genius Act pretty much allows institutions to use roughly the top 20 cryptos. I'm not going to get into it like like the definitions of all of it, but roughly the top 20 crypto. So, why is all this important? So, first off, let's start with stable coins. And another thing that I'm going to say actually is and I haven't I haven't prepared this little part of it is Ralph Pal this morning actually doubled down on his super cycle theory and he he talks about um his uh he's talking about like a few different things like monetizing the debt which I think all this makes makes sense in um in the discussion uh credit US and China I'm going to get into in a minute. Um, and I and I think I kind of agree and I'm going to get on to that now. And like I'm just saying like when you get people like Raul who at the minute looks like kind of stupid because he was saying that like it it's not going to be a bear and like a lot of people are arguing whether it's a bear or not. I I I don't think it is. Like I don't think it is by um by by normal definitions of bare markets. I discussed that in the newsletter as well. But when you're getting RA double down when he's in this position, he's not often like long-term wrong. I think you should I think you should pay attention to it.

[00:04:49]Doesn't mean you need to agree, but you should listen to what he's saying and then continue to make your thoughts. So, going back to stable coins, if you think about what a stable coin is, it's just a digital dollar representation of a dollar that sits in a bank account. And I know that they can be backed by other things and that's also kind of like something I want to talk about here as well. But this is the way that I described it to my sister. Okay, you have $1 here and you can call this the legacy financial system and that can be in a bank account. Let's say this is in a bank account. Um, that's one digit.

[00:05:18]That's $1, not digital. This is a web $2. Then you have $1 here and that's a digital dollar. Now, that can be USDT, RLUSD, blah blah blah blah blah, USDC, whatever. Doesn't [ __ ] matter. The point is that's $1 and it's sitting in an account. And that's $1, and it's sitting on a blockchain. So, that's a these these are two completely different systems. This is a digital system. This is the web three system. This is the blockchain. And this is the web two system. It's legacy finance. It's what we use right now. as fiat currency, but also digital in in terms of like you use use a PC to look at your accounts essentially, but it's not settled um digitally. It's almost settled settled back end, isn't it? And this is settled um it has finality. It's settled settled almost front end. Um so yeah, legacy dollar, digital dollar. Okay, this is where I think it gets really exciting and why I think that so many stable coins will be minted because we've got like an overleveraged financial system. That financial system, US debts like what 36 trillion. There's debt everywhere all over the world. But let's just use like US debt is 36 trillion. But realistically, that that's that's the US like debt. But how much money is out there like in derivatives and all this sort of stuff that we aren't counting as as US debt, but it's it's mostly not backed by anything. It's just derivatives um that have just created value out of a thin air. So what I'm saying is that the financial system is is is severely indebted and it's also severely leveraged and all I think a stable coin is and cryptocurrency is is leverage on the current financial system. If we set the foundations like this, which is what the Genius Act is essentially saying, Genius Act is saying that you have to back stable coins with what are like concrete assets. Now, that could be like treasuries or cash equivalents pretty much like, excuse me, there might be some different verbiage in there. That's pretty much what they're saying. So, they're basically saying this is leverage on top of this leverage system because the only way to get one of these is to back it with what is currently um the financial system. So um standard dollar digital dollar. So if you want to mint one digital dollar, you send one standard dollar to the the mter and that could be like say USDT, Tether, could be like Ripple, RLUSD, and circles USDC, it could be any of them. Probably going to be loads more like in the future um if they get approval, etc. So I send $1 to here.

[00:07:40]They hold that dollar in a in a in a trusted bank like a custodian bank account. Uh probably like a JP Morgan or equivalent and then they mint me a digital dollar. Now the $1 I sent has made $2. And I don't know if anyone can argue that against me because I can't see how that isn't happening. So $1 has made two. There's a digital dollar representation of that $1 in in the bank account. And you can you can argue the nuances of it. Oh yeah, but this isn't going to move and la. It's just it's backing it. I get it. But there are $2 like on paper. There are I I can't see another world because I can use this $1 and I can spend it within the digital ecosystem and this dollar still is still sitting here. Yes, there collateral, but it sits with inside the US bank account, the US banking system in this situation.

[00:08:27]And this is another important part which we're going to get to and I hope I can get through all of this without boring you guys to death. But this is where it gets exciting. So if that is the case and we have all these overleveraged banks that and we also have um like all these overleveraged banks that maybe are having trouble with liquidity and all these sorts of different issues. What this is going to create is a lot of dollars coming back into US banks.

[00:08:52]Great. So then they could put that on their balance sheet to say look we are capitalized at this amount la we've got this much cash or cash equivalent because you can use this $1 and that that is in the US bank obviously that's also on chain that you're using it to participate in the new like financial system we're going to get to that but this it's sitting in a US bank account so that's this collateral that's collateral in my opinion on a US bank uh is back on their balance sheet so the other exciting part about that is so so that incentivizes in my opinion that incentivizes almost unlimited minting of of digital dollars. Why wouldn't you? If you're a US bank, if you're Ripple, if your Tether is why you're seeing Tether being one of the most valuable company companies in the world, why would you not just continue to mint to mint to mint? And then if you're the USA and you've now made laws to say, "Yeah, okay, you can do that, but you have to back with a dollar or a state or or a treasury, then you're also incentivizing everyone to buy treasuries because the treasuries earn them interest, which earns them yield over time. So you're sitting with the dollar um here and you've got the dollar online if you're the US and people are buying your debt and earning yield. So the stable coin companies are happy, the banks are happy sitting with extra collateral and uh the US is happy because it's got one turning $1 into two. So you're averaging so so you're doubling the leverage of the system. Um so what so like if we got fractional reserve bank and they lend all this money out say it's 10 to one and then you've got now an extra extra whole layer on top of that. two times 10 to1 in my opinion is 20 to1. That's what I think is basically happening. I'm going to get into that as well. So that's what I think is the first driver.

[00:10:25]So why is that good? Obviously um we're seeing all this like turmoil around the world like who's going to buy US debt?

[00:10:31]These these countries are is struggling with their currency. They got to sell down some treasuries la. So we've got then now this huge demand for treasuries or or potential huge demand for treasuries if there's enough stable coins minted. But what I basically said is there's enough like stable coins are like an unlimited money fund. Um because the you're going to mint the stable coin into a digital uh dollar. You're going to have the dollar there. You're going to use that to buy treasury. So you're going to earn interest on collateral that's just sitting and you've got the digital uh representation. It cost the banks nothing. All they have to do is press okay $1 or $1 equivalent of stable coin. Here is one digital dollar. Okay.

[00:11:11]So that's exciting for the web two world. world, the banks make the money, the USA keep control of all the assets um in the legacy world and someone buys their debt and then you've got this whole new dollar in the digital world.

[00:11:23]Now, why is that exciting for us as crypto people? Well, and this is where I think the Clarity Act becomes super important. Why is it exciting for us as crypto people? Because those dollars, the dollars in this world where where it's where it's legacy world are spent on food and housing and stocks and whatever the [ __ ] you want to spend it on. Like whatever you want to spend a dollar on, that's all spent there. In the digital world, what is it spent on?

[00:11:46]Well, at some point probably tokenized all of these things because it's the extra leverage anyway. And then you can bring all those tokenized assets on chain, too. And that's a different discussion for another time. But what else do you spend it on at the minute?

[00:11:57]What do you have access to? Well, it has to be within the rails that you probably mint it on because otherwise you can just mint it on different rails and you can bridge it, etc. Whatever.

[00:12:06]But at the minute, what do you spend it on? Probably DeFi or like say if you mint on ETH, you're probably spending some ETH to buy ETH as a speculative bet. Like you're investing it. Um because the access to be able to spend it as a normal currency at the minute aren't like that that easy to access. So at least to start with, there's going to be speculative uh movements with with the dollars that are minted on chain.

[00:12:26]Now, that doesn't mean that's going to go on forever. I think that, as I said, everything's going to go on chain. But what does this mean for the world? Like, this is why I think the Clarity Act is important because the Clarity Act is essentially saying to banks and financial institutions, okay, well, crypto has and can be used the same way as any legacy financial instrument pretty much, the top 20 crypto, for example. So, what are they going to do?

[00:12:47]Like, like actually think about this and break it down in your own head. They got a free They got a dollar here. they got an extra free dollar pretty much if for every deposit that they get like they don't control the the minted dollar because I give them the money but if they want to do the same thing so say they buy um let's say they buy treasuries they get the interest they use that interest to buy crypto that's what I think they'll do but also they can see this equation that I've already just made up and then this dollar here it's not just going to sit and do nothing like when you buy USDT when you mint USDT you don't just sit with it in a wallet like why would you it makes no sense so what you do is you probably spend that USDT. Like I've said, what do you spend it on? Bitcoin, ETH, XRP, DeFi. You might use it, as I said, there probably will become more access to use it for day-to-day things, bills, goods, or whatever. But when it's like one click like that, you don't really need to have a lot of cash equivalent sitting in an account because um because you can instantly trade in and out of assets. So I think more than what's already invested will be invested into things on chain. But that's again like a different discussion. But when you've got these dollars coming on chain, you can see what I'm saying here is like the this dollar is then moved there. So say say 3 trillion. Let's just say to start with the crypto space is 2 trillion. Let's say they bring three trillion worth of stables um on chain.

[00:14:06]That's going to add three trillion to the market caps of cryptocurrencies generally just in terms of TVL and not including whatever those those dollars are used for. And if they used to buy crypto because where else you get what else you can you really buy yeah tokenized equities and all this sort of stuff. Yes. Um but some of it will go into crypto and I think that the banks will recognize that. That's why I think the clarity act is important because I think then they'll go okay cool. we're going to buy up all this crypto because what we can see the trend is going to be unlimited stable coins to be minted because of US and everything we just discussed unlimited new dollars coming into like an a digital space and at least some of that is going to flow into the assets that the that the um that the dollars run on on the chains that the dollars run on. So if you're if I'm a bank, I'm going sound. I'm going to be a stable coin issuer, a custodian, and I'm also going to buy the top 20 assets as based on as the clarity act says is safe because I know they're going to get appreciation from the unlimited dollars we're about to mint. So, that's something that I think is um super important. Not to mention the fact that like obviously, like I said, all the money is going to go back to the US.

[00:15:08]It's going to give access to people who've never had access to dollars as well, which takes which is going to be huge in terms of like geopolitical power. Um, and also not to mention the fact that they also like can incentivize and control where these money this money goes. And if you see in things like Tether, for example, you can freeze it.

[00:15:24]If someone's done someone's doing bad with it, you can see every single transaction. So like it's it's just a win-winwin win-win for the financial institutions in my opinion. But if you're positioned in the right place, uh, your asset should um, get upside appreciation. Now, I think this is one of the things that China have realized, and I think this is one of the reason why gold's been going up so much, because China are like, "Shit, we're in [ __ ] trouble if this is what the US go to do, and this is what the US look like they're trying to do." So, they're going [ __ ] buy gold, because that's always been one of the biggest like hedges to financial assets. Um, and I think they've also let their people buy gold. And I think that's one of the reasons why gold spiked in price so much cuz they're like, "Fuck, what's like what's the other way out of here?"

[00:16:02]Because if they do this, then dollar dominance is coming because everyone's going to be able to access the dollar worldwide and all these like weaker currencies, those people are going to have access to dollars and that's going to really make the dollar like super strong in terms of like I'm not saying in terms of strength against other currencies, but I am saying in terms of like global dominance of of of spending of capital. So I think that's super important. I think that's one of the things that Xi and Trump will discuss.

[00:16:27]Um, so yeah. Okay, take a breath. That's that's the first thing that I really wanted to discuss today. Um, now there's other things I've discussed before this as well. Um, you can go and check those out, but I'm going to get a little bit more into like why I think the the China uh discussion is important. We've also got the Fed chair um Kevin Walsh being introduced and he's I think he's going to be essential to um this this stable coin regime that may that may come. I think that he will also give like leeway for this transition into what could be more of a digital system um by allowing people to run hot.

[00:17:08]I think that if we go to why I say other reasons why I think this week is going to be so important is because I think that all this with Venezuela in Iran is all and even maybe like not I'm not saying this is um this this happened because of this but even the Russia Ukraine issue like all of this is going to be discussed in China and I think that China have got control of rare earth they've also got control of production and the US the consumer and they and they are trying to take control of of energy um and I think that that's that's what all this is out um in China, but there's a lot of different nuances to it, some that I don't understand. The relationship with the yen and the yuan and Japan and China um being exporters and all this sort of stuff like I think is going to be discussed. Um as I said, I also think gold I think that um I think that crypto is going to be discussed and I think that we could have a very explosive or and a very interesting week here. I think it's most likely that the outcome is positive.

[00:18:04]Where did I write this somewhere? I don't know. I think it's most likely the outcome is positive because Trump already delayed the meeting once and I think that that's when he was in a less favorable position. I think obviously he likes the position he's in now more because otherwise I don't think he'd be meeting Gene now. Now on top of that, I also think it's the 250th anniversary of the USA. I think Trump's going to come out of this meeting with Xi in in a favorable position for both nations. I think that makes sense. I think China rely on the USA and the USA rely on China. I think they're both going to come to the table and make some sort of deal. I hope that involves crypto and I think there's a good chance especially as these laws are passing this week. I think it's uncanny timing that the day that Xi Ping is meeting uh Donald Trump is the day that the uh Clarity Act is being signed up and then obviously Walsh in this week as well. I think that's all interesting. I think you're going to have uh obviously the 4th of July. I think the US is going to be doing well with the 250th anniversary of the US. I think it's going to be um exciting for the world um in terms of the the asset asset prices rising into the World Cup when everyone's looking at Trump and the USA. Um I think all of this uh it starts the ball starts rolling this week. But I think the most important part that I think everybody's missing is is how much leverage the USA can get. I mean leverage in terms of like how much of a multiple of of the current financial system they can make from from the blockchain. And I also think when you look at people like Ral Pal, when you look at Dan Tapiro, Arthur Hayes, and I don't care if you like them or don't agree with the decisions they made in the past or they've done something's wrong. Like I actually don't give a [ __ ] What I give a [ __ ] about is their opinion and their thoughts on the world and the markets cuz they've got 10 times more experience than I have. And they're saying like 100 trillion. And I'm like struggling to get my head around that to start with. And they're talking about like AI using Rails for payment. And I think that's all correct.

[00:19:57]But what I think is they're also right, but I also think that they're they're right with that. I think that is true. I think AI is going to do those things.

[00:20:05]And I think they're going to discuss that in China as well, by the way. Like semiconductors, AI, etc. Trump's going to say, "Oh, we'll give you the energy."

[00:20:10]Then they're going to say, "Oh, we'll give you the the precious metals and we we need these many chips or whatever."

[00:20:15]But I think um the thing that they not necessarily miss, I think they see it directionally is that everybody's incentivized to bring stuff on chain because the banks can still own the assets. The banks can also mint like it's it's just free. It's just a free get out of jail free card if they use it right as long as China agree is what I'm saying. And I think that they probably will um because why wouldn't they if there's a good deal for them. And I think it's going to change the world of finance as we know it because every single country in the world is going to have instant access to dollars which is another part we haven't really discussed with like a serious waiting. But me in the UK, why would like I can trade and hold all my wealth in dollars on chain and instantly swap to the pound or the digital pound as soon as I need to. um exit uh the trade or or the capital that I'm in. Now, this is why I've always argued I've said this from day dot that every single country in the world should probably have a crypto exchange, a national crypto exchange where the and the only way they can really tax people for their for their assets is by charging them at the point of entry or exit. I.e. If you live in the UK and you've got all your money invested in crypto, like I can like I I could hide all my capital if I wanted to on chain like I like if you got some education.

[00:21:40]I'm not even the smartest guy in the room, but I could hide I could hide all my capital on chain pretty much. Um the places where I can't the touch points where you come where you're on an off ramp. So in this situation, just make a make a national exchange charge a spread let's say 5%. So when you move your XRP into dollars or when you move the dollars off into the pound, you need to buy some food or you need to pay your mortgage or you need to pay your energy bill. There's a 5% spread. The government takes the 5%, you spend the digital pound, everyone's happy.

[00:22:09]Otherwise, you're going to be cha chasing your tail forever. You're not going to know what anyone's got. And if we come into a world where the dollar starts to get accepted everywhere, you're in [ __ ] trouble because all of a sudden your pound doesn't mean anything. And that's what I think is that's what I think China have realized.

[00:22:22]That's what I think that that's why I think gold's gone up so much and I don't think enough countries really realize that at a governmental level. They might, but I also think they can try and dis disincentivize their population to do that. But when you've got an iPhone in your pocket, it's pretty [ __ ] hard to stop it. This is exactly my point because if you can um get access to a dollar on your phone, let's say even with WhatsApp or um just any crypto wallet and I think more is coming like Telegram for example, like all these things are giving you these these access points, these touch points to the dollar. All of a sudden the whole world's financial system looks completely different. Yes, at the minute the dollar has been like this um this liquid or kind of liquid asset where you go anywhere in the world, you can swap the dollar into their currency, but not instantly um and not at the same scale as what we've got now. So I think this boosts the the US's economic position 100x like in terms of control because you can also again if you look at Tether um or even if you look at ROUSD on the XRP ledger like that as far as I understand you can claw back any asset that isn't native XRP. So that means that ROSD is minted on chain. It's not a native asset. So they probably can freeze or pull back RLUSD specifically.

[00:23:34]They can't do that with XRP but that's similar with ETH or or Tether on Tron.

[00:23:38]Like you've seen them doing this. You've seen them doing it already. Tether froze like 500 million like in the last week or something. So it gives the USA like it's like Swift 2.0 but with more control. Um and like look I you can sit here and argue about whether it's good or bad for the world and the need for privacy and this why I think privacy probably does pretty well. um I don't think it is going to be the main thing that does well because I think that all these legacy or not legacy all these like top 10 um rails like XRP, ETH, Salana potentially uh Tron probably um all these networks that run this new financial system will probably gain exponential amounts of of market cap because of TVL and then spending that TVL and then if there's any correlation between TVL and price as well is another discussion but I think they'll gain I mean monumental amounts of price appreciation uh because all of this money is going to come on chain and I think 100 trillion is an underestimation to be honest especially if you start to tokenize everything which I think is going to happen because as soon as all this money comes on chain the same discussion for the dollar that I've had where you have $1 here and $1 here basically is the same for a tokenized asset and a real asset like um I think that discussion comes into play as well.

[00:24:55]So I think the trend is more on chain because it's more leverage. It's free money for the financial system and for that I'm not saying it's right or wrong and it kind of changes my perception of why I got into crypto in the first place. But I do think it means that if you're positioned in the right place now, you have one of the biggest opportunities to generate wealth in the history of of of humankind. Like I really think that and in the shortest space in humankind like you like I don't know which cryptos are going to be the winners. I've always said that like but if you pick something that's probably going to be in the top 10 you're going to make a lot of money.

[00:25:31]That's what I that's what I believe and I'm not saying that I'm going to be right. None of this is financial advice but you pick XRP and or ETH or both because you can do that. You can buy as much crypto as you like and the market cap of crypto goes from two trillion to 100 trillion even rouser. You make 50x now. That's from now and and it could go like I said there's quadrillions in derivatives and that's this is the money that we've got like right now. It it it could exponentially increase in value.

[00:26:03]As I've just explained, everybody's incentivized for this to happen especially in the legacy financial system. So, unless I'm fundamentally misunderstanding something, I think it's coming. Um, I think it massively depends on whether Trump can do a deal with Xi.

[00:26:19]And I think it all seems to be culminating this week, weirdly. And I think if if that does happen, um, hold on tight and don't get shaken out of your position. Um, if you believe that we're going to go to a more digital world and you believe that the banking system is corrupt and you believe that people who are in power are power crazy, then you probably think that this is going to happen. That's the conclusion that I've got to. And uh, hope you enjoyed my TED talk, guys. If you did, please hit the like button, hit the subscribe button, share it with a friend. I'd love to know your thoughts and comments on this. Like, I have been thinking about this for a while. I' probably not got it all across. There's probably more. It's easier when someone challenges me on it and I can give my opinion on that as well. I've just tried to give like an overview and basically buckle up. I think this week's going to be even if it's not reported on massively, I think it's going to be massively I think it's massively important. I think it's funny that the UFO files came out and the Epstein files are coming out just around this sort of time when we're having like a financial revolution because I think that people are saying, "Oh, the UFOs files are to distract from the Epstein files." But I think realistically it's all just don't talk about how important all of this is and how obvious in my opinion I think it is. Um, but yeah, let me know what you guys think on that as well. As I said, nothing nothing in this video is financial advice. I wanted to give you my thoughts. Um, yeah, peace up a town down as Crypto Insight UK would say. I'd love to hear what you guys think as well.