Friday, June 06, 2025

Crypto's New Bailout Fund: Your Savings Account

The GENIUS Act would require banks to prioritize stablecoin owners over customers if there's a financial collapse.

Posted by retort at 09:44 AM | 15 COMMENTS | permalink

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"As currently drafted, the GENIUS bill paves another road to financial self-destruction that will undermine the American and global economy." One author predicted the 2008 crash. The other won a Nobel prize. Without fixes, this bill shouldn't pass.

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-- Elizabeth Warren (@warren.senate.gov) Jun 3, 2025 at 11:08 AM

Comments

Crypto will be the next big depression. Making money on crypto is so easy that, of course, too many people are buying into it as if it's a non-stop force. But the negatives will show up eventually and many people will not be diversified, causing a crash that banks will not be able to recover from. What's even more sad is one of the biggest reasons crypto became a thing was to have a separate currency from fiat so that a crash doesn't impact it. But, since greedy people see dollar signs, it will get more and more abused until a crash occurs. This isn't a partisan thing.

#1 | Posted by humtake at 2025-06-06 11:36 AM

Does anyone here think that MGT, Gomer Comer, Barkeep Barbie and their ilk understand cryptocurrency? They can barely read, much less have a grasp of the theory of money and currencies.

To reiterate: cryptocurrencies are vehicles for naked speculation and criminal activity, and nothing else. They are NOT investments. They re not money, as so widely defined. Anyone who buys into crypto should do so with money that they never expect to see again...

#2 | Posted by catdog at 2025-06-06 01:18 PM

Crypto is like anything associated with Fat Donnie Loser.

A ------- FAT FRAUD.

#3 | Posted by LegallyYourDead at 2025-06-06 02:55 PM

Did AI write this bill?

Show me the Republicans who actually support this. I want names.

#4 | Posted by snoofy at 2025-06-06 03:08 PM

Crypto will be the next big depression.

#1 | Posted by humtake

And you'll blame democrats instead of the people who caused it.

#5 | Posted by SpeakSoftly at 2025-06-06 03:58 PM

Governments have already basically legalized these Ponzi schemes, they shouldn't protect them and regulate them. Crypto bros told us it was all secure and should be unregulated!

#6 | Posted by Derek_Wildstar at 2025-06-06 07:42 PM

More from the cited article ...

... During a bank collapse, the language buried deep in the bill could effectively require financial institutions to drain money from regular depositors' savings and checking accounts and give it to cryptocurrency investors to reduce those investors' losses. ...

#7 | Posted by LampLighter at 2025-06-06 07:53 PM

@#7

So, the FDIC assurance is gone?

#8 | Posted by LampLighter at 2025-06-06 07:53 PM

Deposit Insurance
www.fdic.gov

... The FDIC provides deposit insurance to protect your money in the event of a bank failure. Your deposits are automatically insured to at least $250,000 at each FDIC-insured bank. ...

#9 | Posted by LampLighter at 2025-06-06 07:55 PM

"So, the FDIC assurance is gone?"

Based on the wording, Crypto would take precedence. So basically, YES.

They'll run out of money before they get to the regular investors.

#10 | Posted by Danforth at 2025-06-06 08:14 PM

@#10 .... They'll run out of money before they get to the regular investors. ...

I agree, with one minor change ....

I'd change the word "investors" to "savers" because, imo, it is not the investors who may lose out.

But those who put their life savings into FDIC-insured savings accounts, with the hope that those savings will still be there when needed.

#11 | Posted by LampLighter at 2025-06-06 08:27 PM

... The GENIUS Act would require banks to prioritize stablecoin owners over customers if there's a financial collapse. ...

So, another prioritization of the wealthy over workers by the Trump administration?


More from the cited article ...

... After a flood of crypto industry campaign cash, the U.S. Senate is poised to pass ...

#12 | Posted by LampLighter at 2025-06-06 08:30 PM

"I'd change the word "investors" to "savers" "

The author accepts the friendly amendment....

#13 | Posted by Danforth at 2025-06-06 08:32 PM

I'm not worried, all my millions are tied up in Beanie Babies and Cabbage Patch Kids.

#14 | Posted by snoofy at 2025-06-06 08:35 PM

@#13

thx.

#15 | Posted by LampLighter at 2025-06-06 08:37 PM

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