Trump is Looting the Treasury

8 days ago by Viking_Hippie to c/aboringdystopia

Donald Trump is poised to exploit stablecoins and digital currency to amass unparalleled wealth, presenting an urgent need to understand and address this potential economic shift.

Warl0k3 64 points 8 days ago

TL;DR: (y'all owe me for this one, that article is badly in need of an editor)

GOP have pushed bills moving regulation of crypto under Trump's oversight, and passed a bill that prevents the treasury from creating it's own stablecoin - thus setting the stage for huge investment of US debt into private stablecoins if/when the US moves towards a digital currency, of which Trump's USD1 coin is the obvious candidate.

Pretty concerning, and I'll forgive them the sensational headline because that's actually what's being set up, if their interpretation is right (which seems damn plausible)

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poVoq -33 points 8 days ago

Haven't read an article so full of BS in a while... thanks for sharing 😅

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UnderpantsWeevil 32 points 8 days ago

Donald Trump has laid the groundwork to become one of the wealthiest people on the planet by personally making money from every dollar printed in the United States. And the worse the economy gets, the more money he stands to make. The House has already passed three crypto bills that would make this potential a reality by allowing the Trump family to control the global stablecoin market.

So, there's an inevitable need to hyperbolize in this kind of article that I hate.

But StableCoins are a notoriously sketch subset of Cryptocurrency. Trump getting into the game - with the ability to influence which StableCoin vendors have direct access to the Fed credit window - has an opportunity to make obscene profits.

The second bill is known as the CLARITY Act which gives more regulatory authority of crypto to the business-friendly Commodity Futures Trading Commission (CFTC) rather than the SEC. It passed the House with bipartisan support, which is awful because the CFTC is notoriously lax. We have them to thank for past crises like speculative oil shocks, the Enron scandal and, what’s the other one…Oh yeah, the Global Financial Crisis.

I despise the writing style, but they've got a concern that's legitimate. The fact that the crypto lobby has it's hooks in both parties further exacerbates the risks. Just like with Clinton signing the Gramm-Leach-Bliley Act in '99, this is a precursor for a disaster.

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Hermit_Lailoken 13 points 8 days ago

What parts of it are BS?

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poVoq -8 points 8 days ago

Almost all of it, but not even explaining (or understanding?) what stable coins actually are is the icing on the BS cake.

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