Alexander Lorenzo breaks down the July 18, 2025 Genius Act, which lets banks issue synthetic stablecoins backed by safe reserves. He argues this lets them duplicate deposits and extract roughly $2.3 trillion yearly from a $63.8 trillion market, using crypto adoption as cover for old banking tricks.
The banking cartel really just got exposed, and they have been putting a lot of money into crypto. I'm sure you heard by now that on July 18th, 2025, the Genius Act got signed into law, which allows banks to create a synthetic stablecoin in crypto, and all they have to do is back it 1-to-1 with US dollars, Treasury bills, or safe reserves. Now here's the key word: safe reserves. And this really exposed the fact that they're using the same framework they've used for hundreds of years to control people with money. Step number 1: get people to adopt a new financial tool and actually make the tool legitimate so that people can adopt it. Right now, stablecoins, not a scam. They actually have to back it 1 to 1, which is really good. Then because of the efficiencies of the new tool, everybody starts adopting it because it's actually better and they get mass adoption to the point where people rely on it. Then they move the goalpost by changing the rules of the mechanism so that they can make money because they controlled it in the first place. Look at the Federal Reserve's creation. Number one, in 1913, it was created to stabilize banks and prevent panics, and it actually did help. All the banks in the world started trusting the Federal Reserve as the lender of last resort, but nobody knows that they have the ability to change the rules anytime they want. They set interest rates, they print money, and they control the entire monetary supply. It's the same thing with credit cards. MasterCard made it literally free to use a credit card or a debit card to get people to adopt it. Now, obviously, everyone uses credit cards because it's way more convenient than cash. And once they got everybody to adopt it, they changed the rules. Now merchants pay 2 to 3% on fees, netting them trillions of dollars. They did the same exact thing with banks. Believe it or not, at one point, banks used to be 100% when it comes to their reserves. Meaning if there's 100 customers and each of them have $1,000, They would actually have $100 grand in the actual bank in cash. They got everybody to adopt it because, of course, a bank insuring your money is really good and it's easier to have your money in a bank. But then they completely changed the rules with fractional reserve banking. Right now, if there's $100 grand in bank deposits, they don't need to have any cash in it. Zero. And so it's just a number in the system that they get to control and they take your money and they loan it out. And now they're doing the same exact thing with stablecoins. According to the Genius Act, they are allowed to legally duplicate your money. So if you give them $1,000, they'll give you $1,000 worth of stablecoin. But they still have your $1,000. Then they take your $1,000 and they invest it again. Let's read the fine print on what they invested in. They are legally allowed to invest it in any of these, and these are trillion-dollar markets. All these markets added up is $63.8 trillion. If they get everybody to adopt the stablecoin, they'll literally be getting $2.3 trillion per year just by getting you to adopt a stablecoin. They take no risk and they make money for free. Just to give you a perspective on how big that is, the government deficit The amount of debt we have to pay per year is $1.9 trillion. And just like I stated in previous videos, we have pretty much every entity in the world trying to get people to adopt stablecoins. So the question is, how will this affect crypto asset prices? Before, people would have to take the money in their bank, deposit into Coinbase, put in a stablecoin, and then maybe they'll buy an altcoin. That's 4 steps. And now these 4 entities are officially deleting all those steps and just getting everybody to get into crypto, which makes it substantially easier for them to adopt an altcoin that will increase in value. The crypto market has substantially more money in it now. I hope you're listening.
