Congress Just Changed The Way Banks Make Money

追加: 2026-05-17

[00:00:01]On July 18th, 2025, Trump signed the most important crypto law in American history. It's called the GENIUS Act, the first federal law to ever comprehensively regulate a digital asset. For the new category of money, Congress has created uh this is the first category of money that Congress has created since the Federal Reserve Act of 1913, over 112 years ago. The biggest single legal change to American banking since 1933, the Glass-Steagall Act. If you hold Bitcoin, if you hold Ethereum, if you hold any stablecoin, if you have a checking account at the US Bank, or at any US Bank for that matter, and you don't understand what this law does, you're going to be on the wrong side of the largest restructuring of American money since the Eurodollar market formed 70 years ago. And I want to be a direct about how big this is.

[00:00:55]You need, if you don't own crypto, you need to learn about it and you need to learn about it soon. You need to invest in it safely. None of this is financial advice, but I did this when Bitcoin was $500 each and it changed my life forever. I'd already done pretty darn well successfully or financially, but man, try buying Bitcoin at 500 bucks and look at what it is now. This is going to blow up adoption. I'm going to throw a link down to two courses, the Bitcoin XRP 101 course and the crypto cycles course, the bundle. Incredible game-changer for you. Learn about this now. So, let's dive back into this, okay? Um stablecoin transaction volume in 2024 was 27.6 trillion dollars.

[00:01:37]That surpassed Visa and MasterCard combined.

[00:01:42]The current stablecoin market is roughly 300 billion dollars outstanding.

[00:01:47]Standard Chartered pro- uh projects that this is going to hit two trillion dollars by the end of 2028. JP Morgan, Bank of America, both of them are building stablecoin products right now.

[00:02:00]Circle, Paxos, and three other non-bank issuers received federal trust bank charters in December of last year. The OCC issued its proposed rulemaking back in this last February. The law takes full effect on January 18th, 2027, 8 months from this video coming out.

[00:02:24]This breakdown is your warning. Watch this video so that you can understand what the law actually does, why every major bank is building inside its framework right now.

[00:02:36]And the warning clause inside this law that the country's leading bankruptcy academics have publicly said does not work the way Congress has described it.

[00:02:47]If you hold any digital asset and you do not understand what what I'm talking about, you are unprepared for the rails the institutional money is about to ride on. People talk about this in reference to XRP all of the time, and this is one of the reasons why I own XRP.

[00:03:05]You see, the genius act, full name, is guiding and establishing national innovation for US stablecoins.

[00:03:13]How do you like that title?

[00:03:16]You'd have to be a genius to read it.

[00:03:18]I'm just thinking [laughter] about it.

[00:03:19]But the Senate passed it 68 to 30 on June 17th of last year. Uh the House passed it 308 to 122 on July 17th, right? This is bipartisan. The bank lobby supported it. The crypto industry supported it. Consumer Reports opposed it. Weird. The bill passed anyway. The law created a new category of money.

[00:03:41]Looks like a dollar It looks like a dollar, it moves like a dollar, smells like a dollar. It's backed one-for-one with dollars and Treasury bills, right? Of 93 days or less. It's a big deal, right? This is not a bank deposit. It's not FDIC insured. It's not a security. It's not a commodity.

[00:04:01]It's a new category that sits alongside everything else without failing under any of the other existing protection frameworks.

[00:04:11]See, that's the trap. The OCC granted national trust bank charters to Circle, Paxos, and three other non-bank firms back in January, or sorry, December of 2025.

[00:04:23]Bank of America and JP Morgan are both developing stablecoin products as we speak. The bank that holds your checking account is about to become a stablecoin issuer.

[00:04:35]There is one clause in this law that nobody in the press is reading, and that's section 11. It amends the US bankruptcy code directly.

[00:04:44]It says that stablecoin holders get priority over all other claims against the issuer in an insolvency.

[00:04:54]That language is what was used to sell the bill as a consumer protection.

[00:05:00]That's the part that uh That's the part that everyone actually repeated. That's the part that doesn't work. You see, by law, stablecoin issuers cannot pay interest on yield to holders. A stablecoin is a payment instrument, not a savings product. This matters because the bank issuing the stablecoin collects for yield on treasury reserves that are backing it and keeping it solid, right? Um At a at about 300 billion in stablecoins outstanding today, at 4 to 5% treasury yields, that's about 12 to 15 billion dollars a year flowing into the issuer's hands.

[00:05:40]That 2 trillion in stablecoins by 2028 that I said earlier, that's 80 to 100 billion in interest per year.

[00:05:48]See, the consumer earns nothing on the underlying Treasury that's funding the issuers income.

[00:05:55]The no interest rule was sold as consumer simplicity. How do you like that? You're not going to make any interest. Uh that's going to go to someone else and like a bank. Uh but you know what? It makes it simpler for you.

[00:06:08]See, the actual function is to protect the issuers revenue model, right? The Treasury yield is the business. Here's the second piece. The Federal Reserve Bank of Kansas City published a paper in August by a an economist named Stephen Luby. Uh he said, "If consumers move money from their checking accounts into uh bank issued stablecoins, the bank loses its deposit funding, right? The You know, the money that they take and reloan out that you think is in your account, they're actually reloaned it out at interest, right? So, they're going to lose that."

[00:06:43]So, he says, "The bank has two choices.

[00:06:45]Pay the higher interest to keep the deposits it still has, which reduces banks' profits, or reduce lending into the real economy, which reduces credit supply to small businesses and homeowners."

[00:06:59]The Treasury Borrowing Advisory Committee acknowledged this directly in their last July 2025 report, and this is what they said, and I quote, "Potential impact of bank deposits bears close monitoring."

[00:07:15]That's it. That's an important statement. Because they're starting to see this, there could be a run on the banks, at least their deposits, because that capital is going to flee to stablecoins if they give an interest rate, right? See, that's the Treasury Department itself lighting the issue and going, "Hey, warning, warning, warning, right?" If you've made it this far, here's why this hits your wallet, okay?

[00:07:39]To everybody that's sticking around for the video. The community bank in your area is already under pressure from a commercial real estate uh stressful situation. 60 banks were on the FDIC problem list as of the fourth quarter of last year. Two banks have already failed this year. When stable coin coin growth pulls funding out of community banks, the failure um will actually accelerate the pace of these failures. The bank that most likely is to fail is the one without stablecoin products to offer. Okay, so think about regional banks and small banks. The bank that survives is the one that already uh is built into this new instru- built into this new instrument. The Genius Act doesn't create a new payment system. It consolidates banking power towards the institutions large enough to uh to deal with this issue. Now, let's talk let's go back to the section 11 uh and the bankruptcy clause. See, the bankruptcy professor at the actual uh statute, his name is Bob Lawless. How do you like that name for He works at the uh the University of Illinois. Um uh I'm completely stupid. Let me go back.

[00:08:50]Bob Lawless is the statute. The uh the guy that works at the University of Illinois is Adam Levitin or Levitan. Um at he works um I'm all over the map. I'm just going to move on cuz this is going to get crazy cuz everybody's acts are named after people and then the people that are talking about the acts have similar names and it throws me off.

[00:09:13]Uh I think this is why it's important to learn about stablecoins and how you can make yield.

[00:09:22]Like right now I'm making like 3.6% on my Coinbase account uh on all of my USDC holdings.

[00:09:28]Uh it's a big deal and most people are sitting back and letting this amazing time just blow them by.

[00:09:38]And banks are about to feel serious stress and that's why this genius act and the clarity act is have been taking so long to fully materialize because it is going to change the way banks do business.

[00:09:51]And the video that I did a little while ago on Travis Hill running the FDIC and how he is now made it legal again for private equity uh companies to come in and buy failed banks.

[00:10:03]I think what's happening is that you're going to see later will go down probably as one of the greatest conspiracies ever for a bunch of bureaucrats in the government to get their buddies to buy banks and they all become rich after they leave the government.

[00:10:16]>> [cough] >> And this 100% has to be tied to this amazing new type of money that's been created, stablecoins.

[00:10:24]And if you're not involved in this now and learning about it now and not learning about, you know, crypto cycles and how those work, you're going to fail. So, I highly suggest I'm going to put two links down below to the uh crypto cycles course and to the that group of uh courses, the Bitcoin 101 and the security protocol. If you're new, that's a great place to start. If you've been in this for a while, learn about crypto cycles. It's going to change your life.

[00:10:50]It's a huge deal. All right, that being said, the Economic Ninja is out.