Though most Americans have yet to realize it, the financial ecosphere has changed forever as the country and the world enters a new age of what is considered money, and how regular citizens will interact with it and be forced to live with these new rules.
The WinePress has noted several times this year that the Trump administration is moving quickly to deregulate the banking and crypto sectors, and working towards implementing the rapid digitization of money and financial systems.
In March, Trump signed two executive orders that overhaul the Treasury Department by eliminating cash and check payments. I noted at the time that these executive orders referenced utilizing instant-transfer payment rails such as FedNow, which lays the foundation for tokenized money and assets. The Biden White House and the Federal Reserve have previously admitted that FedNow would be used to facilitate the transaction of a CBDC. Trump’s executive orders claimed that they were not creating a CBDC, but the actions taken indicated the opposite.
Moreover, Trump’s One, Big, Beautiful Bill creates “Trump Accounts,” essentially baby bonds by another name. These accounts are created and managed by the Treasury - the same Treasury that was overhauled months prior to be digital - and those direct deposits then come directly from the Federal Reserve into those accounts; effectively creating a CBDC.
There are three bills that were passed this week, each interconnected with each other. We will breakdown each one and what it means and what some of its effects are
It is worth noting that President Donald and Treasurer Scott Bessent have both openly expressed their support for these bills. Bessent said in May, “We believe the United States will be the premier destination for digital assets. Digital assets are an important source of innovation that can drive usage of the U.S. dollar around the world with stablecoin legislation
Last month, Vice-President JD Vance declared that “There’s a new sheriff in town,” vowing that the administration would fire anyone who was not on board the crypto train.
“In this administration, we do not think that stablecoins threaten the integrity of the United States dollar, quite the opposite. In fact, we view them as a force multiplier of our economic might. […] It’s a hedge against skyrocketing inflation, which has eroded the real savings rate of Americans over the last four years.”
“S.1582 - GENIUS Act” creates a framework for stablecoins. It has been debated in the Senate for months before it was adopted on Wednesday. The U.S. Senate Banking Committee passed it in March, and after some delays and amendment discussions, the Senate formally passed the bill in June. The House stayed-up late on Wednesday in an historic ten-hour voting session, resulting in a 308 - 122 vote.
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