Like the issuance of Greenbacks during the Civil War or FDR's gold confiscation in 1933, the U.S. government is scheming to radically change the form and feel of money once again. The goal is to mask an outright default. Yet make no mistake, the little guy – that's you – will get screwed.

The GENIUS Act and the New Digital Dollar
America is 54 years into its experiment with pure fiat money, which followed the termination of the Bretton Woods Agreement in 1971. We are now witnessing the start of another financial re-engineering of money. The move to a digitally native, stablecoin-anchored dollar system.

This is happening whether you like it or not. In fact, the overarching legislation has already been put in place.

It's called the GENIUS Act. And it was signed into law by President Trump on July 18, 2025. The acronym stands for Guiding and Establishing National Innovation for U.S. Stablecoins Act.

Stablecoins, if you didn't know, are a type of cryptocurrency that are backed by assets considered to be reliable such as a national currency or a commodity. Stablecoins are typically used to transfer funds between different cryptocurrency tokens.

The GENIUS Act requires stablecoins to be backed one-for-one by U.S. dollars or other low-risk assets. Its focus is on mandating 100 percent reserve backing for payment stablecoins, primarily with short-term U.S. Treasuries. This policy commences the next shift in American money.

The stablecoin framework links the exploding global digital asset economy directly to U.S. liabilities. Every time a stablecoin issuer creates a digital unit, they are legally compelled to purchase a piece of U.S. debt (to maintain their 1:1 backing).

As digital trade, tokenized assets, and instant payments grow worldwide, the demand for these stable, regulated, dollar-pegged assets (stablecoins) will become immense. This translates directly into a structural, near-unlimited demand for U.S. Treasury bills.

If this works, as intended, the U.S. government will have a virtually unlimited pool of credit to finance its spending and debt. So, too, the demand for dollars created by the 1:1 backing with stablecoins will preserve the dollar's value and its status as the reserve currency of the world.

The Complete Digitization of Finance

The stablecoin, in effect, is becoming the "New Digital Dollar." That is, a private-sector tokenized liability that is globally liquid and instantly settled yet remains tethered to the sovereign credit of the U.S. government through the Treasury reserve requirement. It's fiat money on steroids, reinforced by digital demand.