Stablecoins as a Hidden Trigger for Market Collapse On its glossy surface, the GENIUS Act appears to bring legitimacy to the stablecoin sector. But underneath lies a structural vulnerability few are talking about. By requiring stablecoins to be backed one-to-one by “high-quality liquid assets”—namely U.S. Treasuries—the Act invites systemic fragility into the heart of the bond market. In the event of a sudden redemption wave, stablecoin issuers would be forced to dump Treasuries en masse. That means rising yields, falling bond prices, liquidity drains, and contagion across every asset class connected to the Treasury complex—which, in today's dollar-saturated global system, is everything. This isn’t a safeguard. It’s a detonator. A Credit Pipeline Rerouted to Feed the Government Beast Traditionally, banks…
Continue reading as a Citizen
Dedollarize News is free to read for signed-up members. Become a Citizen to finish this article, save what matters, and get the daily “While You Were Distracted” briefing.
No credit card required.
