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This New Stablecoin Act Just Gave Banks Unlimited Printing power

2 Sept 2025 · 1 min

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This content was created by Alexander Lorenzo. This content was uploaded by Alexander Lorenzo. This is a YouTube video titled "This New Stablecoin Act Just Gave Banks Unlimited Printing power" (published 2025-09-02). The excerpt is a single-speaker commentary (labeled SPEAKER A) about a newly passed stablecoin law called the "Genius Act," explaining that banks are now legally allowed to create stablecoins. The speaker argues this creates a multiplier effect—e.g., a $1,000 stablecoin deposit results in $1,000 in crypto plus $1,000 the bank can use (such as investing in government debt)—leading to an effective duplication of money and a reinforcing feedback loop. No individual speaker name or multiple participants are identified in the excerpt.

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There's a higher multiplier now through the creation of stablecoins. The Genius Act that just got passed, which is a stablecoin law where banks are allowed to create stablecoins now legally, a bank can do it. So it's the same entity that's been basically the mechanism to inject liquidity into the market. They have effectively just duplicated money because when you create a stablecoin, there's a multiplier effect on the stablecoin. If you put $1,000 into a stablecoin, there's $1,000 in crypto and $1,000 for the bank to use whatever they want. When you give them the money, like you're like, I want a stablecoin, they can use that money to invest into government debt. So there's a 2x multiplier effect, and there's a feedback loop to that.