🤑 The GENIUS Act: A Debt-Fueled Masquerade Ball? 🎭

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Ah, the theater of legislation! When the inimitable President Donald Trump, with a flourish of his quill, inscribed the GENIUS Act into law last July, the world was treated to a spectacle of such audacity that even I, Oscar Wilde, might blush with envy. Hailed as the first comprehensive crypto bill, it was draped in the velvet cloak of fostering digital assets, a veritable Cinderella story for the blockchain ball. 🧚‍♂️

But, dear reader, as with all things that glitter, one must squint to see the tarnish. A recent analysis, as sharp as a wit at a Victorian soiree, suggests the GENIUS Act is less about regulating crypto and more about a government’s desperate clutch for debt management. How deliciously ironic! 🍷

Crypto: The New Debt-Servant in Town? 🎩

The ever-astute Shanaka Anslem, a market expert with a pen as sharp as his insights, took to the digital colosseum of X (formerly Twitter) to proclaim: “EVERYONE THOUGHT THE GENIUS ACT WAS ABOUT CRYPTO REGULATION. THE DATA JUST PROVED IT WAS SOMETHING ELSE ENTIRELY.” Oh, the drama! The intrigue! The sheer audacity of it all! 🎭

The initial fanfare, like a firework on a damp evening, fizzled within 48 hours, overshadowed by the more prosaic discussions of tech regulation and stablecoin rules. But, ah, the plot thickens! Embedded within the 47 pages of legislative prose was a clause so cunning, it would make Machiavelli blush: every stablecoin must be backed 100% by US Treasury bills, with no room for cash in banks or corporate bonds. How quaint! 🧾

At the Act’s inception, the stablecoin market cap was a mere $200 billion. Today, it has swelled to a robust $309 billion, a veritable feast for the government’s debt appetite. By 2030, Treasury Secretary Bessent predicts a $3 trillion banquet. Bon appétit, indeed! 🍽️

Anslem, with his characteristic flair, notes the genius (pun intended) of this scheme: the government no longer needs to woo buyers for its debt. Each stablecoin purchase is a forced marriage to a Treasury bill. Legislative engineering at its finest, or as I might say, “a debt-fueled masquerade ball.” 🎭

A Shift in the Regulatory Waltz? 💃

The Bank for International Settlements, those sober arbiters of finance, reveal that every $3.5 billion in stablecoin growth reduces government borrowing costs by 0.025%. By the time the market reaches $3 trillion, taxpayers could save $114 billion annually-a tidy $900 per household. How generous of our legislative overlords! 🎁

Bessent, with a straight face, confirmed this last week: stablecoin issuance means no need for larger bond auctions. The government, it seems, has found a new dance partner in debt financing, one that doesn’t require the traditional courtship. 🕺

Even JPMorgan, that bastion of skepticism, has joined the fray, announcing it will accept Bitcoin as collateral. Oh, the irony! The institution that spent a decade dismissing crypto as fraud now embraces it with open arms. How deliciously Wildean! 🤑

The crux, my dear reader, lies in the shift of regulatory control from the Federal Reserve to the Office of the Comptroller of the Currency, now reporting directly to the Treasury Secretary. Anslem’s conclusion is as sharp as a rapier: “This is not monetary policy. This is legislative engineering of debt demand. And it’s been operational since July.” 🛠️

The Treasury now controls who can create digital dollars. And the law requires those digital dollars to fund government debt. This is not monetary policy. This is legislative engineering of debt demand. And it’s been operational since July.​​​​​​​​​​​​​​​​

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2025-11-25 11:10