Trump framed the Act as part of his administration's broader crypto and digital-asset agenda (ending what he called the "war on crypto," launching "Project Crypto," establishing a US Strategic Bitcoin Reserve, and creating a Digital Asset Stockpile):
"One year ago this summer, I signed landmark legislation known as the GENIUS Act. … paving the way for widespread adoption of dollar-backed stablecoins, and that's worked out very well."
Indeed, the Act was already passed last summer, and Trump signed it into law on July 18, 2025, so why all the commotion about it now, more than a year later?
Could be earth-shattering…
Treasury Secretary Scott Bessent tweeted that the GENIUS Act established a landmark framework and clear rules of the road for payment stablecoins, and that the Treasury is moving quickly to implement that framework, asking for "input from stakeholders" in order to "cement the role of the US dollar as the world's reserve currency, and keep America the crypto capital of the world."
The US, via regulated dollar stablecoins and Treasury authority under the GENIUS Act, aims to shut down the unregulated eurodollar market, reclaim control of the dollar's global role, and defund the "rules-based order" and shadow networks, triggering market tremors, surging demand for legitimate dollars, and pressure on non-favored countries such as Britain, the EU, and Canada.
The Act establishes new US federal laws creating a comprehensive regulatory framework for payment stablecoins redeemable for a fixed monetary value (typically $1) and intended to maintain a stable value relative to the "legal tender" currency. It also restricts the issuance of stablecoins to "permitted payment stablecoin issuers," and this is where the GENIUS Act gets extremely interesting.
What GENIUS Is All About…
Speaking at the SALT Conference in Jackson Hole, Wyoming, the former Wall Street executive and prominent advocate for monetary reform Caitlin Long pointed out that the GENIUS Act enables the Treasury Department to define "what is allowed to be a so-called euro-dollar, euro-yen, euro-euro. Or yuan, right?" She continued:"… the term ‘euro' doesn't mean European. It means a dollar issued offshore outside of the United States … These are tokenized fiat currencies issued outside of their home country, and the US Treasury is taking charge of the recognition of the validity of these. That is massive.
The fact that there are institutions outside of the United States that can issue US currency should be regarded as an illegal aberration. Effectively, they're counterfeiting US dollars, but in spite of that, for some reason, it has been taken as normal for decades now. That's in spite of the fact that counterfeiting US dollars abroad effectively robs the purchasing power of American taxpayers to fund any manner of nefarious activities."
Most likely, that's why this system was allowed to grow to such massive proportions. Caitlin Long again:"… If you're a student of the financial markets, you know that the eurodollar market is as large as the domestic financial market. That's the offshore dollar market. When the US Treasury is taking control of what is recognized as valid, that is taken from the Fed. … The Treasury is taking power back over the US dollar, over the eurodollar markets, and, frankly, over the US role in the financial system globally from the Fed."
Long made these comments after discussing the GENIUS Act with "someone who just walked out" of a Treasury Department meeting, and if she is right (I believe she certainly is), the implications could be truly earth-shattering. To begin with, disenfranchising the Fed and taking control over the currency from it is the stuff of civil wars."To put that into context, when we were talking earlier about how antiquated the traditional system is and that the Fed's systems are themselves behind… If you've been watching, all of the other agencies have issued rules [in accordance with the GENIUS Act]. One glaring exception: the Fed has not issued its rules yet, and according to the GENIUS Act, all of the agencies' rules were supposed to be final a couple of weeks ago. The Fed hasn't even issued theirs yet, so there's this dynamic going on between the Treasury Department and the Fed."
"The dynamic" going on between the Treasury Department and the Fed is a political collision course in which the Treasury is trying to wrest control over the monetary system from the unelected private bankers and return it to the democratically elected government and its legitimate institutions.I know, I know… The idea that the Trump administration is doing anything "legitimate" may defy imagination by now, but the current arrangement is anything but legitimate. It is also patently unconstitutional: the Constitution of the US explicitly authorizes Congress with the power "To coin Money, regulate the Value thereof…" (Article I, Section 8, Clause 5). The Constitution also gives Congress the power "to provide for the punishment of counterfeiting the Securities and current Coin of the United States."
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Contrary to its name, the eurodollar has nothing to do with the European currency. The eurodollar market is an offshore fractional-reserve banking system in which dollar deposits held at banks outside the US are multiplied through interbank lending and book-entry creation, largely free of Fed reserve requirements, to form a vast parallel dollar funding market that ultimately settles via US payment systems.
Eurodollar, Fed, and the Shadow Governments
The counterfeit US dollars circulating abroad are the glue that holds the global "rules-based" order together: they enable the funding needed to bribe foreign officials, pay for and arm the sundry jihadi terror groups and separatist militias. The colossal network of NGOs, charitable organizations, and other groups and activities of shadow governments around the world can't be fully funded through legitimate legal means. These activities often require illegal activities and trillions in embezzled funds.
For example, according to recent reports, billions of dollars have been offered to Iranian officials to sell out and turn Iran over to a government more friendly to the Trump team. In the past, we know that hundreds of millions in US bank notes are routinely smuggled from the Federal Reserve Bank of New York, past the US Comptroller of the Currency, to provide funding for coups, assassinations, regime-change operations, and similar "special assignments" by the shadow government.
That is why it should be essential for the US government to regain control of the dollars circulating abroad (or to render those dollars illegitimate and worthless), defunding the "rules-based global order" and reasserting US economic and financial sovereignty. While it would be too optimistic to expect that the Trump administration has pushed the GENIUS Act to achieve any such elevated goals, we should hope that it might leave behind the means needed for American democracy to reassert its economic and financial sovereignty and turn its currency into a tool to recover its prosperity and economic edge.
In the Meantime, Tremors
Given that half or more of all US dollars in circulation around the world are outside the United States, the administration's intended actions (there'll be ambushes; we'll find out) will cause major tremors in world markets, driving demand for "legitimate" dollars and rendering the "illegitimate" ones worthless. This will enable Trump and his team to exert pressure on governments around the world and dictate the terms at which their dollar balances may be converted into new stablecoins needed for trade settlement and reserve requirements.
I expect that Great Britain, the EU, and Canada won't be among the "most favored nations" in the near future, which will further worsen their fiscal positions, make it difficult for them to access global markets and procure commodities like oil, natural gas, wheat, and others. This will lead to shortages and exacerbate inflationary pressures at home.
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