The STABLE Act is a bill that intends to destroy the DeFi ecosystem & stablecoins 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 and 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 that validates the stable-coin smart contracts. Unless they’re banks, 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.
Nobody knows yet… Imagine for a second what would happen if a private company located in Hong Kong like Tether Limited, which is currently the number one trading pair for all crypto exchanges, worked like a central bank but allowed crypto exchanges to trade their crypto without having to cash out directly with their bank making it easier to keep gains from trades, but didn’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 these backed assets/tokens would become literally useless, like the Bolivar peso with 90% of Venezuela’s population losing faith in it (Devalued). 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 the newly elected president of the United States, has a hard job keeping America from entering the imminent crash that economists have expected for decades. The Arabs seem to be the only ones 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 net worth 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 these events, they’re certainly changing the way people conduct business globally.
I live in America, and I don’t want to see the dollar fail because the chaos will reign not only for us here but all across the globe. Things get worse 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 better profit margins & safe havens like real estate or even stable-coins that pay around 9% interest.
Most people will turn their Bitcoin into stable-coins issued by a few selected private companies, along with banks becoming crypto-custodians taking away the reasons why Bitcoin came into existence in the first place. Hopefully, these dystopian visions are nothing but thin air. BTC and other cryptos were made to protect ourselves from third parties that don’t benefit their users, to give people access to banking, & for those who want to exit the bankster predatory practices that only enrich themselves by ripping off clientele.
With Stuart Levey at Libra’s front, it becomes clear that sooner or 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 this bill becomes law.
In resume, the bill tries to protect giant corporations & aims to the jugular vein of all crypto rallies. This is the renaissance of stable coins since 2017 & the 2020 DeFi movement. The bill not only attempts to hijack the decentralized nature of things disguised as good policies for adoption but also fuels the need for advocates to shill the biggest treat’s to crypto, which in my opinion is Facebook’s stable coin. Libra stablecoin will launch in 2021, most likely thanks to its first CEO, Stuart Levey a highly accomplished 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 tokens representing the dollar as well. What all this means is that any person running software validating stable-coin smart contracts will violate the law unless they’re a 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 tuned, & be safe.