“STABLECOIN”

A few days ago I was surfing the internet, and I came upon a video by Addison Wiggin, the founder of the Grey Swan Fraternity. He was touting the “three little known stocks” that he referred to as “Dollar 2.0.” He indicated that these stocks were positioned to be the next big thing in investing.

I have seen a number of similar videos over the past few months. They are always by someone touted to be a financial expert, and promising you incredible returns if you invest in what they are presenting. The key in all of these, is that they want you to subscribe to their financial service, newsletter or other financial item.

This video was touting the “Stablecoin” and that legislation had just been passed by Congress regulating this. I hadn’t heard of the Stablecoin, so I listened to the presentation. Surprise, it wasn’t any different than many of the other financial videos. He wanted you to subscribe to his “Grey Swan Fraternity” at a reduced price of $79.00 for three months and then $99.00 per month thereafter. As a premium to you subscribing, he would provide you with a number of their forecasts, including the three stocks that he felt would benefit the most from this legislation.

The one thing that got my attention was the “Stablecoin.” I hadn’t heard of this before, and decided to look into the legislation.

The Stablecoin, a digital financial asset has been around for a few years, regulated by only state laws and regulations, where permitted. The GENIUS ACT, referred to as S 1582, Guilding & Establishing National Innovation for U.S. Stablecoins Act of 2025, passed by the U.S. Senate on June 17, 2025 by a 68-30 vote, and the House on July 17, 2025 by a 308-112 vote, provides for the first time, a federal regulatory framework for this digital asset.

This was advocated for by the present administration, and was signed into law by President Trump on July18, 2025. As I researched this Act and the details around this digital asset, I found a number of significant differences between normal crypto currencies and the Stablecoin.

Although some states have had some form of state regulation, there was no federal law or regulation governing Stablecoins. This Act creates regulations covering the issuance and governance of this coin. The Act allows payments to be issued by subsidiaries of insured depository institutions, organizations approved by the Office of the Comptroller of the Currency (OCC), and other organizations that meet certain standards under various state regulations. Regulation authorities will include the OCC and the Federal Banking Agency that supervises the parent banking depository.

No organization will be permitted to issue Stablecoins unless authorized by a “Stablecoin Certification Review Committee.” This committee will consist of representatives from the U.S. Department of the Treasury, Federal Reserve, and the Federal Deposit Insurance Corporation. This will apply to both U.S. and non-U.S. organizations.

The Act also established reserve requirements that organizations who issue Stablecoins must meet. It is 1-1, meaning that for every $1.00 issued there must be $1.00 of hard safe assets backing it up. This can mean Treasury Bonds and Bills, or other deposits.

This law also requires each state Stablecoin regulator, to certify to the Federal Regulator, that they meet the Federal Standards. This certification will be reviewed at the Federal level by a Certification Review Committee.

An organization can only be monitored by a state organization if they issue less than $10 billion of Stablecoins. The Act also prohibits issuers of Stablecoins from paying interest to holders of the coins.

S 1582 will be effective, either in 18 months after the enactment of the Act – January 18, 2027, or 120 days after final regulations implementing this Act is issued by Federal Regulators. The Act only forms a framework, and now implementation details must be established. I would expect that the actual date of implementation is somewhere in between.

Some financial forecasters believe that the Stablecoin will be Dollar 2.0, and that it will eclipse the dollar in everyday commerce. Obviously, time will tell.

Wiggin’s three organizations that he believes will be leading this new Dollar 2.0 revolution, includes: Circle Internet Group, Robinhood markets and Blackrock. His Grey Swan organization believes that the return on your investment could be 5-10 times. Others believe it could be as much as 40 times. Only time will tell.

I went to ChatGPT, my preferred AI mentor, and asked it who it believed would apply to issue the Stablecoin. ChatGPT indicated that within the next 12-24 months the following 10 candidates are highly likely to apply and be granted approval:

1. Bank of America

2. Citigroup

3. Circle

4. PayPal

5. Zelle

6, JPMorgan

7. Morgan Stanley/Goldman Sachs

8. Stripe

9. Walmart/Amazon

10. New issuers – smaller

In reviewing this, I kept wondering what is the benefit to the U.S. Government? Then I had an epiphany! This coin requires the issuer to have a 1-1 reserve ratio in Treasury Bills or Bonds or other hard assets.

Currently, China is a major purchaser of Treasury Bills and Bonds, but there is no guarantee that they will continue to be. The current economic uncertainties with tariffs could affect that. We have had a global economy for years. That is gradually changing under this administration. What will the future be?

Currently our national debt is $36 trillion. Fifteen foreign nations own $16 trillion of that debt in the form of Treasury securities. Japan is the largest holder with $1.3 trillion of that debt, followed by the United Kingdom at $808 billion, and then China at $757 billion.

If we don’t resolve our tariff issues, we could find many of these countries redeeming their U.S. Securities . If this were to happen, where would we be? Maybe Stablecoin is the current administration’s fall back position.

Requiring the issuers to maintain a 1-1 reserve, would provide a built in market for our U.S. Treasury Bills & Bonds. Interesting, because nowhere in my research did I see anything concerning this. I guess time will tell.

Jess Sweely

Madison, Va.

October 29, 2025