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▲ Donald Trump, Stablecoin/AI Generated Image
The GENIUS stablecoin regulation bill, promoted by US President Donald Trump, is a strategy to build a government-controlled digital dollar system under the pretext of banning Central Bank Digital Currencies (CBDCs).
The cryptocurrency-specialized YouTube channel Coin Bureau analyzed the true intentions behind the executive order signed by President Donald Trump in a video uploaded on April 26 (local time). Trump prohibited the issuance of central bank digital currencies citing privacy protection. Simultaneously, he ordered the establishment of a digital payment infrastructure through private issuers. The key tool is the GENIUS stablecoin regulation bill.
This bill mandates that all stablecoin supplies must be backed 1:1 by short-term US Treasury bonds or cash. The amount of US Treasury bonds held by private issuers like Tether and Circle already approaches $200 billion. This comes at a time when foreign creditors are selling off Treasury bonds. The US government is utilizing stablecoins as new buyers of Treasury bonds. Scott Bessent, the nominee for Secretary of the Treasury, publicly stated that the stablecoin mechanism is a new source of funding.
The bill prohibits issuers from distributing interest or profits to consumers. Consumers will not earn any profit even if they deposit $10,000. In contrast, issuers monopolize the profits from Treasury bonds. Tether recorded over $10 billion in net profit in 2025 alone. A structure where public interest is transferred to private companies and the government has been legally established. Consumers are forced to give up their right to profits generated from their assets in exchange for convenience.
The Treasury Department has mandated that all issuers possess the technical capability to freeze specific wallets or refuse transactions. Tether and Circle have frozen over 7,200 addresses and $3.3 billion in funds at the request of the Treasury Department. The Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC) demand technology to block suspicious transactions. The anonymity of cash has been eliminated. A foundation has been laid for the government to monitor citizens' financial activities in real-time.
Large financial institutions such as JP Morgan and BlackRock have already taken control of the system. BlackRock manages $150 billion in assets connected to the digital market. The decentralized financial ecosystem, which began with Bitcoin (BTC), has been rapidly absorbed into the regulatory framework designed by Wall Street's giant capital. A new era of the digital dollar, led by the government and major banks, has officially begun.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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