Stablecoins Will DESTROY The Dollar (Major Changes Ahead)

0:00 So imagine opening your banking app and seeing a Bitcoin tap. Treasury Secretary Scott Bessant says the launch of these dollar peg stable coins could unlock a $2 trillion market. And that's because the OC just allowed banks to hold crypto and the Senate passed the Genius Act to integrate the multi-billion dollar stable coin market into the US economy. Legislative win for the crypto industry. The Genius Act passing in the Senate earlier this week. the bill establishing a federal framework for stable coins and now going to face a vote in the House. Stable coin legislation is expected to clear the Senate this week. Stable coins underpin most of the $3.3 trillion market for Bitcoin. And the best part is that it's actually going to have real rules and regulations

0:45 to protect consumers. And because all of this is happening, CEOs of major companies are starting to talk about it. We've been embracing and building for years preparing for this moment. The Genius Act has now uh passed the Senate as you know and is expected to pass the House. I think that will give regulatory clarity to stable coins. And if stable coins become a mode of currency that people want to embrace around the world, we will enable that on the Visa system and scale that to those billions of endpoints. That's what you need to do well in payments. That's what Visa does better than anybody in the world. Now, here are the four game changers that I want you to know about that are happening right now. The Genius Act, the Clarity Act, the Bitcoin Act, and the

1:31 Federal Reserve's own green light for banks to get involved. Pretty soon, we're going to be able to easily send stable coins across different networks, making instant low fee payments as easy as sending a text message. And what this will do is it's going to build a bridge between the legacy banking system and the $200 billion stable coin market. And that will have huge consequences on assets like Bitcoin. JP Morgan announced its own stable coin like product called JPMD. Payments firm Therve announced a stable coin to pair with the 90 billion transactions that it processes every year. And even Walmart and Amazon are reportedly looking into their own tokens. There's a lot that's going on. And in today's video, I'm going to explain each of these changes

2:16 and how banks like the Federal Reserve have quietly rolled back their crypto restrictions and show you exactly what this will mean for your wallet, your investment strategy, and the future of not just US, but global finance. I want you to be ready for the next era of banking. So, with that said, let's get into it. Hi, my name is Andre Jick. Hope you're doing well. Come for the finance and stay for the crypto. This video is going to have a lot of complicated acronyms and banking words you might have never heard before, but I'm going to try to explain them as I go. So, first, stable coins. Stable coins are meant to be digital dollars. In other words, they are cryptocurrencies that try to maintain a 1:1 ratio with the US dollar. So, one stable coin is always

3:02 redeemable for one real dollar. And because they track the dollar, stable coins don't swing 10 or 20% in value in a single day like something like Bitcoin might. They trade at roughly $1, give or take a couple cents. Now, why does that matter? It matters because stable coins let you move money instantly, 24/7, anywhere in the world. No bank holidays, no multi-day wire delays, and with fees that are a fraction of the cost. You can pay rent, send dollars to family overseas, or move money between exchanges without converting back to dollars every single time. Now, in the world of decentralized finance or DeFi, stable coins are the on and off ramp for

3:50 everything from lending and borrowing. Stable coins give us the stability and familiarity of the dollar. And up until this point, they were not a big part of the US economy. But that's all about to change. Before Congress ever wrote a single line of crypto legislation, regulators flipped the switch on May 7th, 2025. The OC dropped interpretive letter 1184, which officially told nationally chartered banks, you may custody and transact crypto under our existing safe and sound rules. OCC regulated banks may provide custody services including the safekeeping and secure storage of cryptocurrencies and other digital assets all on behalf of

4:36 their customers. That moment is what gave banks the green light to hold Bitcoin and stable coins and it set the stage for all the major bills that came after it, which I'll help explain. So, first let me start by explaining the OC's interpretive letter number 1184. So the OC short for office of the controller of the currency. Basically the OC is the federal agency that gives out banking licenses and it makes sure that banks are following all the rules that banks are supposed to follow. Now when you hear nationally chartered banks, it means institutions licensed directly by the OC aka approved. And under this guidance, any bank with an OC charter, which are most of the major

5:22 banks we bank with, can custody or allow the deposits of crypto assets under their safe and sound banking standards. It's a long way of saying that the major commercial banks of the US are approved and can now hold Bitcoin and stable coins and other tokens in secure cold storage vaults. They'll be able to buy and sell orders at your direction the same way they do with stocks when you call your bank. And they can even stake proof ofstake tokens to earn some interest as long as they have risk management policies in place. They're following all the laws of anti-money laundering rules. And because of all these changes, major custodians have already filed applications to be able to do this, which tells us bankbacked

6:10 crypto custody is almost a guarantee at this point. It's not here yet, but it's coming. In a nutshell, what all of this does is it sets the stage for the US economy to integrate digital assets with our dollars and deposits. But this is just the opening move. Next, I want to show you the Genius Act and how it's going to integrate this multi-billion dollar stable coin market into the economy. And speaking of integrating crypto into everyday life, did you know that it's possible to earn Bitcoin without ever buying it? That's what I've been doing with the Bitcoin credit card by Gemini, which is today's sponsor and actually a card I've been using for a while now. All opinions are my own and we're not influenced by Gemini. I use the credit card like any other regular credit card for gas and groceries, and I

6:57 earn Bitcoin every time I use it. It has no annual fees, and you can see the rates and fees in the description for more info. But this credit card gives you up to 4% back in over 50 cryptocurrencies instantly. You can choose which one you want. Personally, I have it set to Bitcoin, but that's 4% on gas, transit, and ride share, 3% on dining, 2% on groceries, and 1% for everything else. It's a Mastercard world delete, so I've used it internationally with no issues. And here's the magic. You're investing as you spend. In fact, according to Gemini, card holders who earned and held their Bitcoin for 1 year saw an average appreciation of 176%. Those are not your typical credit card points. So, if you're interested, click the link in the description or go to gemini.com/andre

7:43 and get $200 in Bitcoin when you spend $3,000 in your first 90 days. And that's one way to frontr run the future of finance while doing literally nothing different. Thank you Gemini for sponsoring this segment of the video. And now let's get back to it. So the Genius Act, which stands for guiding and establishing national innovation for US stable coins, is not just another crypto bill. It's the first time Congress has created a framework for stable coins. Senator Cynthia Lumis and Senator Sherid Brown created the bill and surprisingly it has a lot of support from all sides. In the Senate, it passed with a 6830 vote, which is one of the biggest margins for a textile piece of legislation. And here's exactly what it does. First, it says that only federally

8:30 insured banks or non-bank firms approved by the OC, remember the same agency we just talked about, can issue payment stable coins. So only banks and institutions approved by the OC can integrate these stable coins. Number two, full reserve backing. Instead of fractional reserve banking, which is the system we run on today, stable coins have to be backed one to one by high quality liquid assets like cash or short-term treasury bonds, and they have to be kept in separate reserve accounts at a Federal Reserve Bank or equivalent. The third thing it does is it says issuers will have to publish a third-party audit each month proving

9:18 their tokens are fully collateralized. Now collateralized is just a fancy term for backed by something of value. So these tokens can't just be magically printed out of thin air. They have to be backed by real value. And this is good. Now, number four, stable coin programs have to follow the Bank Secrecy Act, meaning they have to follow what's called KYC and AML. And they have to follow the travel rule standard. By the way, travel rule was created so that bad actors can't send money anonymously because every link in the transfer will have to know who started it, who's getting it, just like with a traditional wire transfer. You know how you have to put in a lot of that info for a wire

10:04 transfer? Same idea here. And once the Genius Act becomes law, of which there's a real chance that it could, stable coins should be just as reliable as your checking account. But that's only half the story because next up, I want to help explain something called the Clarity Act. Now, the Clarity Act is a bill from the House that finally draws hard lines of what is what and what part of the government manages it. Now, before Clarity, if you remember, crypto projects lived in a weird gray zone. Like, some tokens got hit with the SEC. Others claimed they were commodities, but nobody knew where the rules started or where they ended. And because of that, it was easy for the previous SEC administration to sue crypto companies because there weren't any clear rules.

10:51 This bill changes all of that by breaking it down into three clear buckets. securities, digital commodities, and payment stable coins. Now, the first is securities, which is any token sold as an investment contract. Remember the 2017 ICOs promising they're going to be the next Bitcoin, future profits, right? That falls under the SEC or Securities and Exchange Commission, and that is their realm to patrol. Now, if a token is classified as a security, then exchanges and brokers that sell them will have to register like they would for the stock market. They have to file regular disclosures and follow anti-fraud rules. This is good. Now, the second bucket is

11:39 digital commodities, which are native blockchain assets. The biggest one is obviously Bitcoin and most layer 1 tokens and that will be managed by the CFTC. Now platforms that trade digital commodities will have to register as futures or swaps dealers and they have to abide by market regulations and separate customer assets. Now the third bucket is payment stable coins and these get oversight from both agencies the CFTC and the SEC and it's tied back to the Genius Act framework we just talked about. So both regulators have to make sure that they stay fully backed and consumer safe. Now you might also be wondering, well what if companies try to get around these rules by incorporating

12:26 overseas? We've seen a lot of that happen in crypto incorporated in the Cayman Islands, right? They thought of this and here's how they want to protect against that. Representative French Hill and Representative Maxine Waters built a bipartisan coalition that prevents US projects from going overseas. And the bill also has strong support and votes are expected really soon, perhaps the next week of July. So once the bill is passed, the government will know exactly which rules apply to your favorite tokens. But what this act ultimately does is it's going to create new exchanges and make our favorite existing ones hopefully safer and token launches will be much more clear and consumers will have more protection. That's the hope. So that's the second act. Then

13:13 there's the third act which is the Bitcoin act which is the proposal to make Bitcoin an official US reserve asset. So imagine the US Treasury holding up to a million Bitcoin along with gold. So, I'll explain exactly how realistic that is, who's backing it, and what it could mean for Bitcoin's price. So, the Bitcoin Act was introduced by Senator Cynthia Lumis in March 2025. It would make the US government a buyer of Bitcoin, essentially creating a strategic Bitcoin reserve along with gold. And here's what you need to know. This act calls for the US Treasury in combination with the Federal Reserve Bank to buy up to a million Bitcoin, which is roughly about 5% of its total supply. Now, unlike most government spending, though, this would not need

14:00 new taxpayer dollars or debt. Instead, it would shuffle the Treasury or Fed holdings into Bitcoin. Now, in practice, that means the US Treasury could take parts of its cash holdings, its short-term treasuries, or other liquid assets like some of the overnight reverse repo balances or excess cash in its general account and then swap them for Bitcoin on the open market. And because these assets are already on the US balance sheet, no new tax dollars are needed to buy Bitcoin. So, when people are like, well, I don't want my taxpayer dollars funding Bitcoin, right? they won't be. The bill is not super specific about how they're going to do this and that is very much on purpose to give them as many options as possible in the

14:46 future. Now, to protect the assets though, the bill also talks about a decentralized vault network. So, think of federalrade cold storage with multi-layer security and strict audit requirements and probably physical security protocols. I imagine all of that stuff. The Bitcoin Act also says that private citizens will always have the rights to buy, hold, and self-custody Bitcoin without government restriction. This is super important because this will help people worry less about the Bitcoin ban. Now, the people who support this bill argue this reserve will actually help the US have more financial strength. It'll help against inflation and it's a way to diversify our $37 trillion debt. But the real

15:34 question is though, how realistic is all of this anyway? And the answer is I don't know. The bill has strong backing and Congress has held hearings and at first people were really excited, but I think the full Senate passage isn't necessarily guaranteed at this point. And the White House hasn't really said that they're going to 100% support it yet either. It hasn't passed anywhere. So, realistically, maybe a slim down version might appear in the future. But even if a fraction of the Bitcoin Act passes, like especially the one about being able to self custody without government intervention would be huge. And it would mean Bitcoin is here to stay again and be a part of the US economy. Technically, it already is since the spot ETF approvals. But this is why despite all the scary headlines

16:20 that we've been seeing on the geopolitics level, Bitcoin has been really steady and that is really incredible. There's more and more buyers every single day like governments and even Bitcoin treasury companies. And also, I'd argue that some of the biggest news is actually happening behind the scenes. And it's something that Jerome Powell recently said about crypto. So, in April of this year, the Federal Reserve withdrew its 2022 letter. And that letter is what forced banks to get preapproval before touching anything to do with crypto. And now all of that is changing. It means banks can now move forward on custody and trading and even stable coin programs without waiting for a thumbs up from the Federal Reserve.

17:06 And that's really what has allowed all of these changes to take place that I just explained. It's what gives them a chance at becoming law. And believe it or not, the person who made all of this possible is Jerome Powell, the guy in charge of the Federal Reserve. And um so banks are free to provide banking services to uh crypto the crypto industry to crypto companies and bank banks are also free to conduct crypto activities as long as they do so in a way that is you know protective of safety and soundness. Jerome Powell went on record and said banks are free to conduct crypto activities which is good but I think the one thing that I'll have to say remember the risk that freedom will come with a major burden which for the banks is their reputation because banks have spent decades and trillions

17:52 of customer dollars building trust as these companies that protect and manage our savings. But now by touching crypto and stable coins and a lot of these unknown coins, they're stepping into an unknown world that a lot of people I think still associate with hacks and scams and, you know, risk. And that's why I think banks can't treat crypto custody like it's just another product. They'll need to be on top of it. And hopefully they're aware of that. But that's why I think this will probably take some time. Once it is here though, I think what Michael Sailor said about the price of Bitcoin is 100% accurate. I'll leave it at this thought, which is when your bank tells you they'll buy Bitcoin for you and they'll make it really easy

18:38 and you can do it on the phone, it'll cost you a million dollars Bitcoin. By the time your bank is ready to custody Bitcoin and they decide to call you about it, the price will have already gone to the moon. For now though, the world doesn't know that this is quietly happening behind the scenes. And that's why there's still such a gap between Bitcoin's current price and where a lot of smart money thinks it will be in the near future. That's also why I've been dollar cost averaging into Bitcoin and self-custodying it. And if you want to learn how to do that step by step, you can find it in the link down below. You can use coupon code Andre 40 to get an additional 40% off the 4-hour class. But as always, I'd love to get your thoughts on what you think will happen and which bank will be the first to do this. I hope you have a wonderful

19:24 rest of your day. Smash the like button. Subscribe if you haven't already. I'd love to see you back here next week. I'll see you soon. Bye-bye.