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March 13, 2025 - The David Knight Show
23:51
GENIUS Stablecoin Act: A Crony Capitalist Digital Currency, Backdoor CBDC
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let's talk about this genius stable coin bill The Genius Stablecoin Bill officially titled the, and this is their acronym, I just love this, Guiding and Establishing National Innovation for U.S. Stablecoins.
Genius.
Well, you know, when you look at these acronyms, typically, like the Patriot Act, they are the exact opposite of what they spell out.
I have a better...
I think we should call it, if we're going to be honest, we should call it the Lucky Lutnik Get Richer Quicker and the Backdoor Private CBDC. But then that gets a lot of letters.
That's like L-L-G-R-Q-B-P-C-B-D-C. So I think we just call it Lucky Lutnik Plus.
Maybe take a tip from the alphabet mafia people.
Anyway, this is bipartisan, and they've had a lot of these types of bills that they have tried to put out there to push forward this exact thing.
This particular one has two Republicans and two Democrats.
The Republicans are Bill Hagerty in Tennessee and Tim Scott in South Carolina.
Oh, and also Cynthia Loomis, who's always been about crypto stuff.
On the Democrat side, they've got Kirsten Gillibrand out of New York.
In the past, they have had others that have been put forward that were also bipartisan.
They said the bill aims to establish a comprehensive federal regulatory framework for payment stablecoins.
These are cryptocurrencies that are designed to maintain a stable value by being pegged to an asset like the U.S. dollar.
You see the flaw here, right?
The U.S. dollar stable.
And what they're trying to do is they're trying to prop up the dollar.
Again, spinning it around, it's always the same problem.
It's always the same problem that you got with a fiat currency, where, you know, when they did Bretton Woods, they're going to pin it to gold.
And at no time at all, they realize, hey, they're printing more paper than they've got gold in Fort Knox to back it up with.
So I created a crisis of confidence after, you know, about 25 years, I guess.
And so then they create the petrodollar.
And so they're always going to come up with something.
So they're going to tie it now, instead of tying it to energy, to oil, they're going to tie it to a stablecoin, to a blockchain.
And I guess, you know, that should confuse people long enough Three card Monty game.
So again, you're going to tie it to the dollar, which in and of itself is just what is worth what I say it is.
How is that stable?
But here's where they're going to use it.
So the key provisions of this act.
First of all, they define what a payment stablecoin is.
The bill defines payment stablecoins as digital assets used for payments or settlements.
In other words, they're going to kind of give this legal tender ability, right?
Then permitted issuers, only specific entities.
Can't issue these stable coins in the U.S., including subsidiaries of insured depository institutions, in other words, banks or credit unions.
They put them here first.
But, folks, as we see the functions of CBDC, as we were talking about this from the very beginning with CBDC, that's going to put banks out of business.
Small banks will go out of business.
They won't be needed.
And so they put them there so they've got to think that they've got a place at the table.
It's not about that.
This is about a...
Monopoly about an oligarchy, really.
And that comes in in the second line.
They've got three different issuers here.
The first one is going to be banks or credit unions.
The second one would be federal qualified non-bank payment stablecoin issuers approved by the Office of Comptroller of the Currency.
Let's see.
That would be somebody that's under.
The Commerce Department, under Lucky Lutnik.
And Lucky Lutnik is the king of stablecoins.
He is heavily involved in Tether.
And then the third one is state-qualified payment stablecoin issuers, subject to state regulations that align with federal standards.
So they say, you know, well, you can, just like you can incorporate in Delaware or whatever, because some of the things that they do are supposedly better than if you incorporated in some other states.
Of course, it kind of bit Elon Musk, didn't it?
When that Delaware judge jumped in and said, I'm sorry, you're paying yourself too much.
It's like, who are you to decide that?
Anyway, but in the same way, you would have these things be able to go into different states.
Regulatory oversight.
So there'd be federal versus state balance.
Issuers with market capitalization over $10 billion would be subject to federal oversight.
Smaller, which means that they don't get any oversight at all, right?
If they're really big, they get overseen by the federal government.
You know, like the FDA oversees the big pharma companies and the USDA oversees the big egg companies and all that.
So, in other words, they can escape regulations completely if they're really big.
If you're smaller, you can opt for state regulation if the state framework is essentially the same as the federal standards.
And then it gives a role to the Federal Reserve.
Remember what I said earlier?
These private cryptocurrencies that they're going to come out with have all the functionality that we hate about CBDC. But hey, it's private so that Trump and his friends can get really, really rich.
And they're going to give the banks a little role, they say.
And they're going to give the Federal Reserve a role.
The Federal Reserve's role is limited direct oversight.
But it can intervene during emergencies.
Well, emergency is a natural state of government now, isn't it?
I mean, we just go from one emergency to the other.
We have multiple emergencies going on all the time.
It doesn't take much to get them involved, then, if they can step in with an emergency.
So, the reserve requirements.
Stablecoins must be backed.
One-to-one by high-quality liquid assets such as U.S. currency.
This is a way to bolster confidence in the dollar.
You're going to tie this cryptocurrency that is going to then add all the features of being able to see what people are doing and being able to freeze assets very easily.
That's very important for them, okay, to stop you from, to confiscate your money just like that.
And so to be able to do it on a permission basis, just like CBDC, and yet to bolster the dollar.
Now, why are they worried about bolstering the dollar if they're going to get rid of the Federal Reserve?
They're not.
They're not going to get rid of the Federal Reserve.
So stablecoins must be backed by the U.S. dollar or by short-term treasury bills.
Or you could throw in the repo stuff, right, as well.
We had that repo market, if you remember, 2019, fall of 2019. The Fed was dumping in, before all the quantitative easing stuff really exploded, they were dumping unbelievable amounts of money and chunks.
First they throw in an amount that is equivalent to the entire gross domestic product for a year of Puerto Rico.
Then they throw in the entire gross domestic product of Switzerland at one point in time, which is the 20...
20th largest economy in the world.
They're just dumping this stuff in left and right.
And I remember talking to Tony Arterman about it and Gerald Salenti, and we're like, what in the world are they up to here with this stuff?
Anyway, and then prohibition.
They specifically prohibit algorithmic stablecoins.
Remember that.
And so, again, this is, they've already put in some legislation.
We're only six or seven weeks into the Trump administration.
I said this was going to happen.
I said, you know, they're going to prohibit CBDC because everybody's wise to that.
Okay, we won't call it CBDC, but we'll bring all the functionality in.
We'll do it in a public-private partnership, and I and my friends are going to make a killing off of this stuff.
And that's what this is.
This is what this legislation is about.
From, again, to show you who is owned.
Tim Scott, Bill Haggerty, Cynthia Loomis, Kirsten Gillibrand.
Consumer protections.
Well, stablecoin holders will get first priority in bankruptcy claims against the issuer.
Wait a minute.
Why would they go bankrupt if they're holding, if they've got this stuff and they're tying it one-to-one to the dollar?
And then, of course, they'll have all their anti-money laundering stuff, their know-your-customer rules and everything, complete visibility for everything, and the ability to shut things down.
So, the purpose of this, as I point out, the Genius Act builds on earlier proposals like the Loomis-Gillibrand Payment Stable Coin Act of April of 2024. Loomis and Gillibrand have already introduced one last year.
About a year ago, April 2024. Patrick McHenry did one of those earlier.
Remember that guy?
The bow tie wearing, gavel slamming friend of Kevin McCarthy?
Sounds like Patrick Henry, doesn't he?
No, he's not.
This is Patrick McHenry from North Carolina.
He retired, but he was very, very angry.
Because his pal, McCarthy, was being kicked out.
So he had to gavel.
And remember how hard he slammed that?
He became a meme out of doing that.
His motto, I guess, unlike Patrick Henry, Patrick McHenry.
Give me McCarthy or give me death.
He was very angry about that.
So he's introduced one of these things, just to show you where he's coming from.
And of course, he was also...
A pal, a protege supported by Karl Rove.
So he's from that group of the Bushes and all of those people, right?
So Patrick Ben-Henry had had a Clarity for Payment Stablecoins Act in 2023. So these things have been coming fast and furious, right?
Had one every year, at least.
And there was a bipartisan push, of course, to regulate these stablecoins.
They said, this is why we need to have stablecoins.
We need to enhance transaction.
We need to strengthen the dollar's dominance.
And that's what they think this is going to do with them.
But it's going to be a private version of a CBDC while they pretend that they're on our side and they're going to get rid of the central bank digital currencies.
They do their public-private version.
The Senate Banking Committee is scheduled to review and vote on this today.
Today.
March the 13th.
If approved, it'll advance to the full Senate.
A companion bill has been introduced in the House by two Republicans.
Republicans are really pushing this.
Because it's Trump who's really pushing this.
And his robber barons in his cabinet.
So for crypto, the bill could legitimize stablecoins.
And again, this is where Lucky Lutnik has been very, very profitable in his connections to Tether.
It could boost adoption, but strict rules might exclude some non-compliant issuers like Tether.
They could easily change that.
The Genius Act represents a significant step toward integrating stablecoins into the U.S. financial system.
And the EU is also working on something similar.
Now, the EU, they're not so worried about public opinion.
They don't care.
And they continue on by saying, well, we're going to do CBDCs or whatever.
A stablecoin framework in the EU that they call MICA, and we'll talk about that as well.
But this article from Cointelegraph says the genius stablecoin bill is a CBDC Trojan horse.
This is quoting a decentralized finance, they call it DeFi, an executive in that market, who is a big supporter of crypto.
But doesn't like this genius stablecoin bill that has been introduced.
Centralized stablecoin features the hallmark of the central bank digital currency.
All of them.
Including the ability of the issuer to freeze tokens.
You have full surveillance.
These people have complete control over your money instantaneously.
You want to talk about debanking on steroids?
The recent genius stablecoin bill is merely a thinly-veiled attempt to usher in central bank digital currency controls through privatized means.
So these people can make money off of it.
That, folks, is the difference between Biden and Trump, for the most part.
Biden does his graft corruption and stuff the old-fashioned way.
He launders it through Ukraine, right?
And selling influence and things like that.
What Trump is doing is Trump is bringing in all of these big tech executives, the very wealthy companies and everything.
They're all going to get a piece of the pie, and they're all going to probably do something for him as well.
So this is according to Gene Rossis, co-founder of the Smartdex Decentralized Trading Platform.
Somebody works in the space.
They don't like what this looks like.
In a statement shared with Cointelegraph, Ross has said that the U.S. government will punish stablecoin issuers that do not comply with a new regulatory framework, similar to the EU's markets and cryptoassets regulations.
So, interestingly enough, you've got these Republicans who are putting out legislation to create a stablecoin framework that is exactly like what they're doing in the EU. Huh.
Looks like global governance again, doesn't it?
It's just a coincidence, isn't it?
It's not a global conspiracy.
It's being pushed on us by Republicans like Trump pushed the global lockdown and all the same rules all happening at the same time.
That was all just a coincidence.
And now the fact that both the EU and the U.S. are pushing out their versions of stablecoins, they're not trying to set up some kind of a global digital currency, are they?
And global digital ID? Because that's where this always evolves to.
You know, when Mark Zuckerberg put out his white paper, he said, I'll create a global digital currency.
And we'll call it Libra.
And in the middle of that was one sentence where he was making his pitch to the different countries to let him do it.
He said, it will become a de facto global ID. Digital ID. So let me do it.
Well, they decided not to, but they're going to do it on their own.
And they're going to do it with people that you trust.
Well, not you, but the vast amount of Americans.
Because, you know, Trump is anti-globalist, right?
That's why he doesn't do what they want with the pandemic.
That's why he doesn't do what they want with the digital currency and all the rest of this stuff.
So this person who works...
And DeFi says the government realizes that if they control stablecoins, they will control financial transactions, and there will be no financial transactional privacy anywhere.
Working with centralized stablecoin issuers means that they can freeze funds anytime they want, essentially what a CBDC would allow them.
So why bother creating a CBDC, especially when it's got a bad image now?
Because we were telling people how bad it was.
And so the response is that the Republicans are going everywhere and saying, no CBD, even Trump, no CBDC anywhere, right?
And then at the same time, they're creating the functionality of the CBDC while everybody cheers them for stopping the CBDC. The result is the same.
With a fake veneer.
Pay attention, folks, to the function, not to the labels.
Pay attention to what they do, even to what they say, you know, but pay attention especially to what they do, not to the political party that they're in even.
You know, it always goes back, and like I started the program.
Pay attention, not to, oh, if it's CNN, I'm not going to pay attention to it, but it's Breitbart.
I trust Breitbart because they like Trump.
No, they're all capable and all lie to you.
Just look at the underlying data and think about it.
You know, it's just like Peter McCullough, you know.
Oh yeah, the mallard ducks, they're the ones that are killing all the chickens.
It's like, give me a break.
Decentralized alternatives to centralized stablecoins, such as algorithmic stablecoins.
Would prove to be a valuable bulwark against the creeping government control over crypto, said Rossis, except that those are specifically prohibited.
They understand what they're doing.
They know exactly what they're doing.
And then you have Emmer, who was the house whip.
I remember when all this stuff started three years ago and I was talking about it and I said, it's really kind of strange that Tom Emmer, the house whip, Is so hardcore set against CBDC. So that's a good thing.
I'm glad, but, you know, why is it that he's doing this?
Then I realized, okay, well, he's being paid.
By the crypto industry.
And at that point in time under Biden, Biden was trying to kill all the private cryptos and he wanted the only crypto to be out there to be controlled by the Federal Reserve and the U.S. government.
So he's going to kill all of his competition with regulations and fear-mongering about energy use and all the rest of this stuff.
And so Tom Emmer had been paid off by all these different crypto bros.
And so he's pushing back against CBDC. And the Republicans are pushing back against all this.
Now, Tom Emmer is backing the stablecoin stuff as he's rejecting the CBDC. Now we see why he was opposing CBDC. Because he wanted his private crypto backers to be the ones running that function for the government.
When you look at this stuff, like I said, yeah, you don't trust these people.
But look, we could...
Cheer on and support Tom Emmer when he's opposing the CBDC. Now you need to oppose Tom Emmer and these people who are pushing the private stablecoin version that's going to replace the CBDC. The Genius Act, introduced by Tennessee Senator Bill Haggerty, proposed a comprehensive framework for over-collateralized stablecoins such as tethers.
And what they mean by that is that they have more dollars than they would need to have a buffer against volatility.
Maybe they don't want to have a buffer against volatility.
Maybe they want volatility.
The bill was revamped to include stricter anti-money laundering things, the know your customer stuff, all the rest of that.
These additional provisions will presumably give U.S.-based stablecoin issuers a hedge over their offshore counterparts.
Because it not only is going to have all this know your customer and report on everybody, but it's also going to have provisions there about having to have liquidity.
Well, that's a good thing.
But then also sanctions checks that will be built into it.
The government can sanction anybody or anything about that.
So, do you think?
People in other countries are going to want to put their money into some digital currency that can just have instantaneous sanctions.
Some digital currency that's going to know everything about you.
I don't think the people who have a lot of money or any knowledge about this stuff are going to want to have anything to do with it, but we'll see what happens.
If it's coming from Trump and the Republicans, it's got to be good, right?
That's what most people will think.
During the recent White House crypto summit, It was on Friday.
U.S. Treasury Secretary Scott Besant said the U.S. would use stablecoin to ensure U.S. dollar hegemony in payments.
This is the way they're going to, the failing dollar, they're going to try to prop it up and revive it because it's all a confidence game.
It's all a con game.
And so now what they're going to do is they're going to con you by calling it a stablecoin when it is tied to a fiat currency.
That simply is about, you know, trust us with the U.S. government.
Centralized stablecoin issuers rely on U.S. bank deposits and short-term cash equivalents, such as treasury bills, to back their digital fiat tokens, which drives up demand for the U.S. dollar and for the U.S. debt instruments, the bonds.
Stablecoin issuers collectively hold over $120 billion in U.S. debt, making them the 18th largest buyer of the U.S. government debt in the world.
See how these things, it's like a snake swallowing its tail there.
We have to find some way to offload this debt.
Well, let's create this thing called stablecoins, and then it'll have to buy the debt.
And then, you know, even though we've got $37 trillion in debt, we can create some crypto reserve thing.
And the people who are pushing that, Michael Saylor, who has the largest crypto company out there in terms of what they own, I think it's something like $21 billion, but he's the largest single institution in terms of owning crypto.
And he's the big pusher, saying the U.S. government's got to buy more, buy more.
Remember the other day I said he wanted to see The U.S. government owning 25% of the Bitcoins when it hits a fixed number by 2035. And he was talking about, and then it's going to make us like $30 to $80 trillion.
But don't sell it.
Don't sell it.
Everything this guy is doing underscores what Catherine Austin Fitz was saying about this all being a pump and dump.
About it being a Ponzi scheme.
We're the last people to hold the crypto.
It's going to be the federal government, and don't sell it.
Let us sell our stuff first.
We'll sell our stuff, and we'll make a lot of money.
You keep holding it, and you be the floor, you be the foundation to prop this Ponzi scheme up.
That's right, boys and girls.
There's a post-election sale on silver and gold.
Trump euphoria has caused a dip in silver and gold.
It's time to buy some medals with fiat dollars before they come to theirs.
Go to DavidKnight.gold to get in touch with the wise wolf himself, Tony Arterburn.
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