A speaker argues that the Genius Act, passed July 19 2025, exempts banks from Dodd-Frank rules and lets them issue stablecoins using the same shadow-banking tactics that caused the 2008 crash. He warns the loophole could trigger another bubble.
The deep state that manufactured the 2008 bull run is doing it again, this time with stablecoins, and they're hiding it. Shadow banking is when they use these little tricks, like for example, they'll make another company to hide their main purpose. A bank does that, that's called shadow banking. They're hiding what they're actually doing. Everybody knows 2008 for the crash, but what people don't know is that the S&P 500 doubled up to 100% right before. If it's a bubble, that means the market has to go up first. And the main cause of that was shadow banking. So basically in 2008, to start the bull run, they gave mortgages, house loans, to pretty much anyone. They didn't really care about credit at all. And the way they were able to do this is because they bundled bad mortgages together and sold them across the financial system to their shadow banks. And because this is bad finance, it's obviously a Ponzi scheme, it doesn't make sense. What happened is the parent banks that initially sold these junk mortgages had to actually step in and absorb the losses of these shadow businesses. Now, according to the financial accounting rule FIN 46, this basically means that all of these really bad companies are now regulated by the same regulations of the big credible banks. So to put it simple, the market went up because of these really bad mortgages. This was like an advantage that nobody knew about. Now that trick is completely over. Everyone knew about the trick. They knew that the mortgages were trash. And so people started panicking, This led to the great financial crisis of 2008, and the market went down 56.8%. And because this was so bad and people lost their homes and lost a whole bunch of money, their life savings, they decided to put in something called the Dodd-Frank Act. And basically, the Dodd-Frank Act does not allow these big powerful banks to create these small little shadow companies so that they can hide their tricks until now. So on July 19th, 2025, there's something called the Genius Act. The Genius Act is currently law in the United States of America, and basically it allows banks to create stablecoins. And really, really fine print, you can see something called Financial Stability Act of 2010 shall not apply. Read this. Financial Stability Act is not a separate law. It's actually part of the Dodd-Frank Act, the act originally used to stop the banks from doing shadow stuff, right? Remember that? So basically, when the Genius Act mentions Financial Stability Act or Section 171, they're talking about the specific parts inside of the Dodd-Frank Act. So when you look at the Genius Act law, which allowed banks to create stablecoins, and you see this: Financial Stability Act of 2010 shall not apply. What they're referring to is the Dodd-Frank Act. So the thing that stopped the shadow banks from replicating 2008 is now void with stablecoins. What I'm saying is the last bubble in 2008 can now be replicated through the adoption of stablecoins, and banks are legally allowed to do it. They did it before, they're gonna do it again. Pay attention.
