The STABLE Act is a bill that intends to destroy the DeFi ecosystem & stable-coins issued by private companies. It stands for “Saving To Achieve a Better Life Experience”. It was introduced in 2019 but 2021 is around the corner & this bill could become law. Would it happen?
The bill covers smart-contract-issued stablecoins like USDJ from Tron, DAI from Ethereum, TLOSD from Telos & so on. Logically, the bill aims to punish any person running the software which validates the stable-coin smart contracts. Unless they’re a bank they will be in trouble with the law.
2020 has been the worst year for the US Dollar because massive debt & inflation projected for the upcoming years. The Federal Reserve printed trillions of dollars amid COVID-19 to prevent a further massive crash. The crash was the fastest fall in global stock markets in financial history & the most devastating one since the Wall Street Crash of 1929. This triggered companies like Micro Strategy & regular everyday individuals to convert dollars to stocks, metals like gold & cryptocurrencies. During this downturn in the economy saving accounts stopped generating interest which personally made me converted some of my savings to crypto & deposited on Celsius to earn between 4 & 6 percent on it [Not financial advice]
Did you know one of Tether founder fathers ran for president in the US 2020 presidential race? His name is Brock Pierce, he didn't won but it shows how Blockchain personalities are starting to enter the political arena.
Could Tether & all stable-coins disappear if governments make them illegal?
Nobody knows yet… Imagine for a second what would happened if a private company located in Hong Kong like Tether Limited which is currently the number one trading pair for all crypto exchanges, works like a central bank but for crypto exchanges to trade their crypto without having to cash out directly with their bank making it easier to keep gains from trades but they don’t behave like a financial institution.
An imminent crash could be a possibility if dollars start to rapidly lose value. It would be logical to think this backed assets/tokens would become literally useless like the Bolivar peso with 90% of Venezuela’s population who lost their religion/faith for it. A massive rally towards Bitcoin & other crypto’s will surge thanks to stable-fiat-coins disappearing. Their market-cap would have to liquidate users with real assets which is how Tether & Libra partially work.
The united states has a lot of power thanks to the Petro Dollar & Biden new elected president of the United States has a hard job at keeping America from entering the imminent crash economist expected for decades. The Arabs seem to be the only one holding it together for the US Dollar & guns, lots of guns!
Here is a quote to clarify the bill bias
“not just because the bill This bill seems to leave most non-bank dollar-denominated liabilities out; it apparently does not cover any liabilities held by PayPal, Venmo, Square Cash, Apple Pay, Google Pay, nor any of the traditional money transmitters like Western Union and Moneygram. The bill, instead, targets dollar-denominated liabilities for special regulatory treatment if and only if they are so-defined “stablecoins.”Peter Van Valkenburgh from Coincenter
FIAT US currencie is dying
If you haven’t noticed Bitcoin’s crypto networth today is roughly 350 billion & each Bitcoin cost around 19k. A massive transfer of wealth is at the horizon & even though we do not know the future we could try to benefit from this events which are certainly changing the way people conduct business globally.
I live in America & trust me, I don’t want to see the dollar fail because the chaos will reign not only be for us here but all across the globe. Things get worst before they get better & the resurgence of Gold & Bitcoin during the pandemic are a sign of how inflated the US Dollar actually has become making investors flee to riskier assets for quick profit & safe havens like real state or even stable-coins that pay around 9% interest.
I believe most people that is not crypto savvy will turned their Bitcoin into stable-coins issued by a few selected private companies along with banks becoming crypto-custodians taking away the reasons why Bitcoin was born in the first place, hopefully my dystopian visions are wrong. BTC an other crypto were made to protect ourselves from third parties that don’t benefit their user, to give people access to banking & for those who want to exit the bankster predatory practices which only enrich themselves from ripping-off clientele.
With Stuart Levey at Libras fore-front it becomes clear that sooner than later Tether will lose its status as the number one stable-coin & perhaps pegged coins like Gemini-Dollar [GUSD], Circles [USDC], Binance [BUSD] will bite the dust as well if the this bill becomes law.
In resume, the bill tries to protect giant corporations & aims to the jugular vein of all crypto rallies. This being the renaissance of stable coins since 2017 & the 2020 DeFi movement. The bill not only attempts to hijack cryptocurrencies decentralized nature of things disguised as good policy for adoption but also fuels the need for advocates to shill the biggest treat to crypto which in my opinion is Facebook’s stable-coin. Libra stable-coin will launch in 2021 is most likely thanks to making its first CEO Stuart Levey a highly accomplish bipartisan who worked in the Bush & Obama era Under Secretary of the Treasury for Terrorism and Financial Intelligence.
This bill tries to butcher smart-contract-issued stablecoins like Dai issued on Ethereum’s DeFi products like MakerDAO or the most recent Tron’s DeFi efforts with Djed which issues USDJ token representing the dollar as well. What all this means is any person is running software that validates a stable-coin smart contracts will violate the law unless they’re Bank.
Staying vigilant about our government across the globe in regards to policies for crypto & the public is a wise move on everyone’s agenda, stay tune & be safe internet friends.