{"id":37713,"date":"2025-09-19T14:30:16","date_gmt":"2025-09-19T21:30:16","guid":{"rendered":"https:\/\/www.itmtrading.com\/blog\/?p=37713"},"modified":"2025-09-19T14:30:16","modified_gmt":"2025-09-19T21:30:16","slug":"genius-act-stablecoins-debt-crisis","status":"publish","type":"post","link":"https:\/\/www.itmtrading.com\/blog\/genius-act-stablecoins-debt-crisis\/","title":{"rendered":"Vietnam Freezes 86 Million Bank Accounts Overnight, US is Next Under Genius Act: Jim Rickards"},"content":{"rendered":"<p>\u201cYou\u2019re going to have a financial panic of unprecedented proportions,&#8221; warns Jim Rickards, NY Times bestselling author, referring to the risks posed by stablecoins and unregulated digital assets enabled by the Genius Act. He points to Vietnam\u2019s mandatory biometric IDs and mass account freezes as a \u201ctrial run\u201d for centralized digital control, and cautions that similar systems could make it easy for governments to monitor, freeze, or confiscate money. \u201cThe time will come when people want their money back. The best definition of a financial crisis I&#8217;ve ever heard is everybody wants his money back,\u201d he states, calling for a run on banks accelerated by AI. stablecoin holders, he explains, will sell treasuries to redeem their cash, potentially triggering a market freeze and unprecedented turmoil in the financial system.<strong data-start=\"545\" data-end=\"636\"><\/p>\n<p>Could the so-called \u201cGenius Act\u201d be the biggest financial Trojan Horse in U.S. history?<\/strong><\/p>\n<p data-start=\"640\" data-end=\"864\">Backed by Washington insiders and sold as \u201cinnovation,\u201d this legislation ties <strong data-start=\"718\" data-end=\"755\">stablecoins directly to U.S. debt<\/strong>\u2014an arrangement that funnels global money into Treasuries while giving private sponsors unlimited leverage.<\/p>\n<p data-start=\"866\" data-end=\"1058\">But as Jim Rickards warns, this is less about financial stability and more about setting the stage for <strong data-start=\"969\" data-end=\"1029\">currency devaluation, asset seizure, and digital control<\/strong>. And the clock is ticking.<\/p>\n<hr data-start=\"1060\" data-end=\"1063\" \/>\n<h2 data-start=\"1065\" data-end=\"1122\">Stablecoins: The Hidden Engine Behind the Genius Act<\/h2>\n<ul data-start=\"1123\" data-end=\"1397\">\n<li data-start=\"1123\" data-end=\"1213\">\n<p data-start=\"1125\" data-end=\"1213\">Stablecoins are marketed as \u201csafe\u201d\u2014worth one dollar, always redeemable for one dollar.<\/p>\n<\/li>\n<li data-start=\"1214\" data-end=\"1307\">\n<p data-start=\"1216\" data-end=\"1307\">In reality, sponsors buy U.S. Treasury bills with investor deposits and pocket the yield.<\/p>\n<\/li>\n<li data-start=\"1308\" data-end=\"1397\">\n<p data-start=\"1310\" data-end=\"1397\">Investors get <strong data-start=\"1324\" data-end=\"1339\">zero return<\/strong>, while sponsors get unlimited profit at near-zero cost.<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"1399\" data-end=\"1590\">Rickards points out: <em data-start=\"1420\" data-end=\"1475\">this is essentially an unregulated money market fund.<\/em> Unlike traditional funds, these issuers are barely audited, lack transparency, and face no meaningful oversight.<\/p>\n<p data-start=\"1592\" data-end=\"1737\"><strong data-start=\"1592\" data-end=\"1605\">The risk:<\/strong> one fraud\u2014or one panic\u2014could spark a <strong data-start=\"1643\" data-end=\"1664\">run on the system<\/strong>, forcing stablecoin sponsors to dump Treasuries into a fragile market.<\/p>\n<hr data-start=\"1739\" data-end=\"1742\" \/>\n<h2 data-start=\"1744\" data-end=\"1794\">The Debt Crisis Narrative: Russia vs. Reality<\/h2>\n<p data-start=\"1795\" data-end=\"1918\">Critics\u2014especially from Moscow\u2014claim stablecoins are America\u2019s desperate attempt to prop up a collapsing Treasury market.<\/p>\n<p data-start=\"1920\" data-end=\"1976\">But Rickards dismantles this narrative with hard data:<\/p>\n<ul data-start=\"1977\" data-end=\"2279\">\n<li data-start=\"1977\" data-end=\"2067\">\n<p data-start=\"1979\" data-end=\"2067\">The U.S. Treasury\u2019s <strong data-start=\"1999\" data-end=\"2013\">TIC report<\/strong> shows foreign holdings of Treasuries remain stable.<\/p>\n<\/li>\n<li data-start=\"2068\" data-end=\"2171\">\n<p data-start=\"2070\" data-end=\"2171\">Central banks are not \u201cdumping\u201d dollars\u2014they\u2019re scrambling for them to defend their own currencies.<\/p>\n<\/li>\n<li data-start=\"2172\" data-end=\"2279\">\n<p data-start=\"2174\" data-end=\"2279\">Yes, central banks are buying record levels of gold. But they\u2019re <strong data-start=\"2239\" data-end=\"2249\">adding<\/strong>, not replacing, Treasuries.<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"2281\" data-end=\"2369\">The real danger isn\u2019t dumping\u2014it\u2019s <strong data-start=\"2316\" data-end=\"2336\">dollar shortages<\/strong>, hidden beneath the headlines.<\/p>\n<hr data-start=\"2371\" data-end=\"2374\" \/>\n<h2 data-start=\"2376\" data-end=\"2421\">The Gold Factor: Why Nations Are Hedging<\/h2>\n<ul data-start=\"2422\" data-end=\"2721\">\n<li data-start=\"2422\" data-end=\"2485\">\n<p data-start=\"2424\" data-end=\"2485\">Since 2010, central banks have been <strong data-start=\"2460\" data-end=\"2482\">net buyers of gold<\/strong>.<\/p>\n<\/li>\n<li data-start=\"2486\" data-end=\"2576\">\n<p data-start=\"2488\" data-end=\"2576\">Russia now holds over <strong data-start=\"2510\" data-end=\"2542\">$150 billion in gold bullion<\/strong>, immune from Western sanctions.<\/p>\n<\/li>\n<li data-start=\"2577\" data-end=\"2721\">\n<p data-start=\"2579\" data-end=\"2721\">Allies and rivals alike see what happened when the U.S. <strong data-start=\"2635\" data-end=\"2679\">froze $300 billion of Russian Treasuries<\/strong>\u2014and they\u2019re hedging with physical gold.<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"2723\" data-end=\"2843\">This is why Rickards stresses: gold isn\u2019t just a hedge, it\u2019s already functioning as the <strong data-start=\"2811\" data-end=\"2840\">BRICS settlement currency<\/strong>.<\/p>\n<hr data-start=\"2845\" data-end=\"2848\" \/>\n<h2 data-start=\"2850\" data-end=\"2883\">The Looming Stablecoin Panic<\/h2>\n<p data-start=\"2884\" data-end=\"2903\">History is clear:<\/p>\n<ul data-start=\"2904\" data-end=\"3038\">\n<li data-start=\"2904\" data-end=\"2973\">\n<p data-start=\"2906\" data-end=\"2973\"><strong data-start=\"2906\" data-end=\"2915\">2008:<\/strong> Money market funds froze until the Fed bailed them out.<\/p>\n<\/li>\n<li data-start=\"2974\" data-end=\"3038\">\n<p data-start=\"2976\" data-end=\"3038\"><strong data-start=\"2976\" data-end=\"2991\">2023 (SVB):<\/strong> One digital \u201crun\u201d drained billions in hours.<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"3040\" data-end=\"3109\">Now imagine that same dynamic\u2014only bigger, faster, and unregulated.<\/p>\n<p data-start=\"3111\" data-end=\"3292\">Stablecoins could ignite a <strong data-start=\"3138\" data-end=\"3159\">run on Treasuries<\/strong> the Fed may not be willing (or able) to stop. As Rickards warns: <em data-start=\"3225\" data-end=\"3290\">\u201cGet ready for a financial panic of unprecedented proportions.\u201d<\/em><\/p>\n<hr data-start=\"3294\" data-end=\"3297\" \/>\n<h2 data-start=\"3299\" data-end=\"3348\">From Vietnam to Washington: The Digital Trap<\/h2>\n<p data-start=\"3349\" data-end=\"3429\">The Genius Act doesn\u2019t just prop up debt\u2014it paves the way for digital control.<\/p>\n<ul data-start=\"3431\" data-end=\"3724\">\n<li data-start=\"3431\" data-end=\"3508\">\n<p data-start=\"3433\" data-end=\"3508\">Vietnam froze <strong data-start=\"3447\" data-end=\"3485\">86 million bank accounts overnight<\/strong> using biometric IDs.<\/p>\n<\/li>\n<li data-start=\"3509\" data-end=\"3612\">\n<p data-start=\"3511\" data-end=\"3612\">The U.S. is quietly developing Fed-backed digital rails, even as politicians claim to oppose CBDCs.<\/p>\n<\/li>\n<li data-start=\"3613\" data-end=\"3724\">\n<p data-start=\"3615\" data-end=\"3724\">Once embedded, stablecoins could serve as the <strong data-start=\"3661\" data-end=\"3722\">gateway to account seizures, debanking, and surveillance.<\/strong><\/p>\n<\/li>\n<\/ul>\n<p data-start=\"3726\" data-end=\"3809\">As Rickards bluntly puts it: <em data-start=\"3755\" data-end=\"3807\">\u201cDon\u2019t think of stablecoins as cash. They\u2019re not.\u201d<\/em><\/p>\n<hr data-start=\"3811\" data-end=\"3814\" \/>\n<h2 data-start=\"3816\" data-end=\"3860\">Gold &amp; Silver: Real Wealth Preservation<\/h2>\n<p data-start=\"3861\" data-end=\"3984\">While politicians engineer financial sleight of hand, physical assets remain the only <strong data-start=\"3947\" data-end=\"3982\">unconfiscatable store of value.<\/strong><\/p>\n<ul data-start=\"3986\" data-end=\"4324\">\n<li data-start=\"3986\" data-end=\"4088\">\n<p data-start=\"3988\" data-end=\"4088\"><strong data-start=\"3988\" data-end=\"4008\">Gold vs. Dollar:<\/strong> Gold has outperformed the dollar every time trust in government debt falters.<\/p>\n<\/li>\n<li data-start=\"4089\" data-end=\"4200\">\n<p data-start=\"4091\" data-end=\"4200\"><strong data-start=\"4091\" data-end=\"4111\">Tangible Assets:<\/strong> Unlike Treasuries or digital tokens, gold and silver can\u2019t be frozen with a keystroke.<\/p>\n<\/li>\n<li data-start=\"4201\" data-end=\"4324\">\n<p data-start=\"4203\" data-end=\"4324\"><strong data-start=\"4203\" data-end=\"4227\">Wealth Preservation:<\/strong> For centuries, precious metals have outlasted political upheavals, defaults, and devaluations.<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"4326\" data-end=\"4424\">In Rickards\u2019 words: hold cash in safe banks, but <strong data-start=\"4375\" data-end=\"4422\">anchor your portfolio with gold and silver.<\/strong><\/p>\n<hr data-start=\"4426\" data-end=\"4429\" \/>\n<h2 data-start=\"4431\" data-end=\"4446\">Conclusion<\/h2>\n<p data-start=\"4447\" data-end=\"4640\">The Genius Act is being sold as \u201cinnovation.\u201d In reality, it\u2019s an <strong data-start=\"4513\" data-end=\"4541\">unregulated debt machine<\/strong> that risks sparking the next financial panic\u2014while opening the door to surveillance and control.<\/p>\n<p data-start=\"4642\" data-end=\"4711\">History shows that <strong data-start=\"4661\" data-end=\"4709\">paper promises fail. Tangible assets endure.<\/strong><\/p>\n<hr data-start=\"4713\" data-end=\"4716\" \/>\n<h2 data-start=\"4718\" data-end=\"4740\">About ITM Trading<\/h2>\n<p data-start=\"4741\" data-end=\"4984\">ITM Trading has over 28 years of experience helping clients safeguard their wealth through personalized strategies built on physical gold and silver. Our team of experts delivers research-backed guidance tailored to today\u2019s economic threats.<\/p>\n<p data-start=\"4986\" data-end=\"5166\"><strong data-start=\"4986\" data-end=\"5030\">THINKING ABOUT PURCHASING GOLD &amp; SILVER?<\/strong><br data-start=\"5030\" data-end=\"5033\" \/>Get expert guidance from our team of analysts with 28+ years of experience.<br data-start=\"5108\" data-end=\"5111\" \/>&#x1f449; [<a href=\"https:\/\/calendly.com\/itmtrading\/500?utm_content=DC05052025\" target=\"_blank\" rel=\"noopener\">SCHEDULE YOUR CALL HERE<\/a>] or call <strong data-start=\"5148\" data-end=\"5164\">866-706-9061<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cYou\u2019re going to have a financial panic of unprecedented proportions,&#8221; warns Jim Rickards, NY Times bestselling author, referring to the risks [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":37714,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2922],"tags":[3145,7186,7187,7188,7189,7190,7191,7192,7193,7194,7195,7196,7197,7198,7199,7200,7201,7202,7203],"class_list":["post-37713","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-daniela-cambone-show","tag-daniela-cambone-show","tag-jim-rickards-interview","tag-vietnam-freezes-bank-accounts","tag-genius-act-risks","tag-stablecoin-financial-panic","tag-unregulated-digital-assets","tag-biometric-id-banking","tag-government-money-control","tag-digital-currency-surveillance","tag-bank-run-warning","tag-u-s-financial-crisis-risk","tag-treasuries-redemption-crisis","tag-ai-accelerating-bank-runs","tag-centralized-digital-finance","tag-confiscation-of-money-risks","tag-global-financial-turmoil","tag-stablecoin-crash-scenario","tag-market-freeze-danger","tag-protecting-wealth-from-crisis"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/37713","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/comments?post=37713"}],"version-history":[{"count":1,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/37713\/revisions"}],"predecessor-version":[{"id":37715,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/37713\/revisions\/37715"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/media\/37714"}],"wp:attachment":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/media?parent=37713"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/categories?post=37713"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/tags?post=37713"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}