“Most Americans don’t realize they live under an expansive surveillance regime that likely violates their constitutional rights. Every purchase, deposit, and transaction, from the smallest Venmo payment for a coffee to a large hospital bill, creates a data point in a system that watches you—even if you’ve done nothing wrong.”
– Katie Haun, MIT Review
Have You Heard of the CLARITY Act?
If you missed it, you’re one among many. Reporting on the subject has been slim. No one wants to talk about it. Certainly, we don’t. But we will. Because it’s important.
We’re referring to the Digital Asset Market Clarity Act, or the CLARITY Act for short, which recently advanced out of the Senate Banking Committee via a 15 to 9 vote. The bill has already passed the House of Representatives and is getting queued up for a Senate vote.
Currently, Senate committee staff are merging the CLARITY Act framework with the companion Digital Commodity Intermediaries Act. The combined bill requires a full Senate floor vote and must survive conference reconciliation before heading to the President’s desk.
Congress has about two months of session time left before the August recess to get the bill to President Trump’s desk for signature. After August, very little gets done through the midterm elections in November. With a little luck, the Act will stall out.
One of the points of contention leading up to the Senate Banking Committee vote had to do with the stablecoin yield provisions. What you need to know, as you’re herded into stablecoins, is that you, as a stablecoin holder will receive no interest from the underlying Treasuries the stablecoins are backed by.
The interest, as stated in the GENIUS Act, goes to stablecoin issuers. You, as a holder of stablecoins, get absolutely diddly-squat. This is the new money regime that’s being put in place. If successful, you’ll have to live with it. Your kids will too.
We are currently 55 years into America’s grand experiment with pure fiat money. If you recall, this cycle that kicked off in 1971 when President Nixon slammed the Bretton Woods gold window shut.
Today, U.S. government finances are buckling under the weight of unprecedented debt. But instead of letting the system face its inevitable economic reckoning, central planners are working overtime to pull off another historic monetary switcheroo.
