🚨 A Quiet Law. A Loud Consequence. 🚨
While markets argued about rate cuts and elections, something far bigger slipped through Congress almost unnoticed.
The GENIUS Act.
On paper? Regulatory cleanup.
In reality? A potential turning point for global money.
💥 The Detail Everyone Missed
U.S. stablecoins can no longer pay yield.
That sounds technical. It isn’t.
Take Tether:
• ~$135B parked in U.S. Treasuries
• ~4.5% yield
• ~$6B per year
Who gets it?
Not you.
The issuer keeps every dollar.
Holding digital dollars just became a cost, not a benefit.
🐉 Meanwhile… China Made a Different Choice
Starting Jan 1, 2026, China’s Digital Yuan pays interest (~0.35%).
So global users now face a simple comparison:
• Hold USD → earn nothing
• Hold e-CNY → earn something
It’s not about ideology.
It’s about incentives.
Money follows yield.
🏦 Institutions Aren’t Waiting
Capital is already migrating into yield-bearing alternatives:
• BlackRock BUIDL
• Franklin Templeton BENJI
~4.9% yield.
Billions flowing in.
No speeches. No headlines. Just movement.
⚠️ The Risk No One Is Talking About
Stablecoin issuers do not have a Federal Reserve backstop.
A BIS warning (Paper 1270) spells it out:
A liquidity shock could force mass Treasury sales →
yields spike →
markets wobble →
real-world consequences.
This isn’t crypto risk.
It’s Treasury market risk.
🧠 The Strategic Misstep
The U.S. made the dollar extractive.
China made its currency distributive.
That difference matters more than slogans.
Dollar dominance isn’t lost in a crash.
It erodes quietly… through better options.
👀 Keep an eye on:
Not financial advice