Donald Trump wants to strengthen unstable crypts of stems’

President Donald TrumpThe recent proposal of Kokamamie to create a strategic card reserve is a big crypto news, not without a good reason: It’s an an illogical ideaHe had already caused A small crypto balloon containing Insider tradingAnd it seems to be a Quid Pro Kuo For crypto political donors. Even some crypto enthusiasts think it’s a bad idea and a Spending taxpayer money.

But the crypto industry was focused on something significant: a account It was previously voted from the Bank’s Committee for Senate, at the beginning of this month, the greenery of the Cryptov property class known as “Stablecoins”. The normalization of stablecoins in the fabric of the financial system is crucial for the broader acceptance of the CRIPTO and the CRIPTO Casino from banks and other financial firms.

It appeared that Trump supported legislation on Thursday in the video address with a digital asset summit of 2025, saying he “called Congress To forward the Landmark legislation to create simple, common rules for stableCOINS and market structure. ”

If this weak account becomes law and legitimates these non-stable coins, the following crypto collision could be far lactological for crippo lovers, as well as the right economy.

What, you can ask, is stablecoin? Well, most cryptocurrency missing a tangible basic value, making them very speculative – people will pay all that think other people are ready to pay them. It makes them infamously volatile and not especially useful for making transactions or as a substitute for money. It’s hard to pay a loaf of bread, liters of milk or stick of butter if your crypto token is now worth one dollar, one cent for an hour later or ten cents a class afterwards.

Enter StableCoins. These cryptocurrency are awarded consistent prices related to (or mitigated) existing currency (such as the US dollar) and they are supported by the collateral reserve that theoretically can quickly repay investors. People buy stablecoine from the issuer that their price will remain stable and can sell them to (or redeem) issuer at any given price, because the issuer has enough collateral funds on their hands.

Stablecoins are largely used for cryptic investment, such as poker chips in the casino. Use your regular money to buy chips to play roulette then cash your gains home when you finish. Cripto investors use stablecoins to buy and sell much more volatile crypturarzers. Using stableCoin for these purchases can have a lower transaction or a conversion fee than the use of cash.

Most crypto investors use stablecoins as Pool relatively stable, liquid assets easier available for cryptic investment. But the Holy Grail Promoter StableCoin uses them for payments. Imprors wants to replace your debit or credit cards as a tool for purchasing regular goods and services, claiming that Blokchain technology will make them faster and cheaper. In some countries with highly volatile currencies and clumsy pay systems, some use stablecoins for cross-border transactions. But in the United States it is far easier to use your card; The idea we would turn to our salaries in Stablecoins to buy groceries is a bit funny.

Which means that the only practical use of stableCoin gambling on the crypt. But there really is nothing new under the sun. STABLECOINS reminds of two existing financial products – bank deposits and mutual funds in the money market. Banks hold your money, keeps records of transactions in your account and give you your money on request, which both the theoretical publishers of Stablecoin also work. And money for the money market is used as a fault fund for other investments, such as stablecoins are for speculations crypto.

But bank accounts and mutual funds in the money market work under robust regulations, for good reasons. Banking history Includes bank races and failuresIncluding in recent years – even with security and health regulations and deposit insurance. And lasts in mutual funds in the money market helped reinforce the financial crisis in 2008. years. Investors had a lot of money parked in what they assumed they were safe accounts. But when large companies like Lehman Brothers failed, Investors rushed in moneyEncouraged marketing of the stock market that is the department in the entire financial system.

Stablecoins has already exposed the same problems that investors left in a comma without any gardels. Stablecoins often separates from their cheerful and many of them lack reliable reserves so people can immediately get their money. In fact, a A study of international economists who looked at 60 different stablecoins found they were everything At least once lost her PEG. Mean that everything is only stable.

TerraForm Laboratory Tera / Luna StableCoin, Esoterial algorithmic stablecoin supported a little more than fantastic computer codes, Cripto Bros was a Cripto Bros as a revolution in finance and was Dear Capitalist Cripto Venture. But that was fake card. When Terra’s delicate algorithm began to melt, investors collapsed and the terrory collapses, driving Cripto Cripto Cripto. Episode revealed that the great crypt is just like a great Wall Street, where a handful is Deeply intertwined firms can quickly expand financial infection. When someone collapses, the others soon followed.

Tether is the number of residues number one number one, and this is seen as a type of central bank cropto dealing with global crypto trading. But Tether already got up with New York Lawyer Generall and the the the the the the the Commission for trade in trade To get rid of claims that it was seduced by investors whether he had enough reserves to cover his coins and failed to complete the backup assets. It is also more and more StableCoin money laundering choices.

Even the circle, considered a serious American issuer Stablecoin, became revealed from her price Peg 2023. year, when Cripto Friendly Silicon Valley Bank (SVB) collapsed. $ 3.3 billion allegedly secure reserves in the circle were held in insecure deposits on SVB. If federal regulators had quick He entered and spent billions to keep the circle and SVB depositorsThe entire crypto industry could be promoted.

Currently, these stablecoins have almost no federal supervision although they behave like some pretty ordinary and regulated financial products. So they bring some regulations for these sketches things sound good, right? Not so fast.

The Senate proposal is largely made by the industry and essentially enabled StableCoin publishers to have their cake and eat it. Would give stablecoins Many privileges associated with bankingBut less of the same responsibilities. For example, the bill would not require issuers of stability to obtain private deposit or really stable and robust reserves. The regulators would have a small ability to look under the hood, and the statements of StableCoin could seek states with light contact regulators to approve their coins.

But the greatest risk was that would enable large technological platforms As well as Amazon, Meta or X to become stable publishers. Congress has long banned non-financial companies to become banks because a combination of trade and banking recipe for disasters. Companies banks have incentives to make reckless investments in their affiliates, and if the associated mention, the bank can come down with it. But this account completely ignored that Firewall.

A Big technology-It stewed stablecoin would be Company Scrip For 21^ul century. Amazon with Bezos Bucks would not only be the dominant seller of the goods, but also de facto banks, issued their currencies own deposits and holding a million customers. This could control access, supervisory transactions, manipulate the price of goods and the price of its misdemeanor. Or, if the X printed musk, it could stop accessing political whims. And if any company has succumbed to the crisis or poor supply management, the collapse could delete stablecoin accounts and a crater of the actual economy.

In 2019, when the target (then Facebook) proposed its own wablcain library, there was a bipartised opposition, which eventually found the idea. Today, StableCoin Backers include Republicans and Democrats like Senator Gillibrand. What has changed is that the crypto industry has Pour Gusher Money NOW SIKOFANTIC CONGRESS. They installed Cripto Huckaster in the White House and in Federal Financial Agencies.

Trump accepted the industry by saying that the US will be crypto capital of the world and creation his coin for crypto memeWhile his family operates with his own crippo exchange. This week, he called at Congress to pass the legislature of Stablecoin During the resagged address with the crupto store summit.

Now Criptocrats have their best opportunity to indicate their anti-government and self-interested ideas in the federal law. This is all part and plot Elone musk and its so-called Government Efficiency Department Attack on the Federal Governmentincluding an attempt Remove the consumer protection office and Defang banking regulators (just as musk has been launched A platform for one’s own financial service).

And CRIPTO CEOS They require a demanding Congress to pass in accordance with a steless account to demonstrate their frieze, but also rubbing the way for much worse in madness. StableCoins is really good for gambling in crypto markets, and this account is Lynchpin to expose the Casino to the Casino to exhibit clipto Casino to exhibit Linchpin. Cripto Bros is a highly baked price to crypt crypto, but when banks and financial firms are exposed not only by passing, but also bust, the actual economy will be set up in greater risk.

In 2022. year, crypto industry Lost over $ 2 trillion worth. But your bank probably didn’t go below because it wasn’t on the neck in Cripto. But this account for StableCoin – and is probably worse to wash law – it could change, if we are all suddenly exposed to risk, deceive and instability that this industry represents.