The Deep State’s Global Banks Are Panicking — Now They’re Scrambling to Stop Sovereign Nations from Benefiting from Trump’s GENIUS Act.
Critics are already calling the GENIUS Act a digital Trojan horse for a U.S. CBDC and they warn that it opens the door to programmable, surveilled money. But the reality is far different. The critics lament that the GENIUS Act does not explicitly mention or ban CBDCs. Marjorie Taylor Greene is right—there is no direct clause stating “no CBDC allowed.” However, it isn’t necessary, as the Genius Act’s language effectively crushes the CBDC fantasy and Central Bank tyranny through careful definition.
Where the Act “Excludes CBDCs” Without Saying It.
Under the GENIUS Act’s legal definitions, a “payment stablecoin”:
- Must be a digital asset tied 1:1 to liquid reserves such as U.S. dollars or short-term Treasuries.
- Must be issued by a “Permitted Payment Stablecoin Issuer” (PPSI) or approved foreign issuer under strict regulatory oversight (com, whitehouse.gov).
- Is explicitly excluded from being classified as a security, deposit, commodity, or—importantly—central bank money (com).
The exclusion of “central bank money” in that definition is the key: it makes it legally impossible for a digital dollar issued by the Federal Reserve to qualify as a stablecoin under this framework.
So, while there’s no direct statement banning a CBDC, the GENIUS Act’s technical structure locks out any form of Fed-issued digital currency by definition. Ironically, Trump is using the Genius Act to undermine, not enable, a CBDC.
Why This Matters in the Context of Rep. Greene’s Comment.
Rep. Marjorie Taylor Greene is expressing a political concern—“there’s no explicit prohibition” — but legally, the Act’s definitions are more powerful than a broad statement of intent. They legally prevent the Fed from issuing a stablecoin without rewriting the Act. Rep. Greene has expressed concerns that stablecoins could be usurped or repurposed by Washington later. Legally, they’d have to redefine stablecoin or pass new legislation because CBDCs are already outside this Act’s scope.
Bottom Line:
- No, the GENIUS Act doesn’t explicitly mention or ban CBDCs, but it implicitly excludes them through its definition of “payment stablecoin” (com, wilmerhale.com).
- To issue a Fed-backed currency under this Act, Congress would have to revise the definitions—or pass a new law.
- Greene’s concern reflects political caution, but the law itself already legally disqualifies a CBDC from being issued as a stablecoin under its terms.
Clearing the Smoke—Why the GENIUS Act Isn’t a Trojan Horse for CBDCs
- No CBDC Definition — Only “Payment Stablecoins”
The GENIUS Act defines a “payment stablecoin” as a digital token used for payments that is:
- Backed 1:1 by U.S. dollars or liquid assets like Treasury bills,
- Issued by licensed domestic or comparable foreign institutions,
- Not classified as securities, bank deposits, commodities, or—crucially—central bank money (Yanis Varoufakis, Paul Hastings, Wikipedia, Morgan Lewis).
There’s no provision for Fed-issued digital currency. The law explicitly prevents any form of “central bank money” from being treated as a stablecoin. To introduce a CBDC under this framework, Congress would have to rewrite the definition, making a U.S. CBDC impossible under current law.
- Tracing the CBDC Fear — Marjorie Taylor Greene vs Reality.
Rep. Marjorie Taylor Greene argued that the GENIUS Act should include an explicit CBDC ban (The Daily Beast). That’s a political position. But legally, the Act’s existing language achieves the same purpose—without needing to say “no CBDC.” It locks CBDCs out of the starting gate, stopping both regulation and issuance in their tracks. If Greene wants explicit clarity, she’s got it — in black-and-white, legal terms.
- Trump’s Ace — Exposing the Deep State’s Marked Deck.
The Deep State’s Global Banks Are Panicking — now they are scrambling to stop sovereign nations from benefiting from Trump’s GENIUS Act. Here’s the strategic genius:
- Decentralizes issuance
Instead of the Fed or BIS controlling money, the Act empowers privately issued stablecoins, domestically or abroad. Money creation is distributed across regulated institutions—not centralized in Washington.
- Drains Federal Leverage
Central banks lose narrative control if private dollars circulate widely outside Fed systems. Instead of letting governments or central banks control digital money (like with CBDCs), the GENIUS Act supports stablecoins issued by private companies—but under clear rules. So the “spotlight” (i.e., power and control) shifts away from centralized authorities and toward a more open, market-driven system that still has regulatory oversight.
- Anchors the dollar in transparent rails
Every dollar-backed token requires full reserve backing and regular attestations, making the system far more transparent than traditional banking (Investopedia).
Trump’s play: he’s not ushering in a CBDC—he’s undermining its necessity.
- How the Global Financial Cartel Keeps the World on a Leash.
For decades, global financial institutions like the IMF, BIS, SWIFT, and World Bank have acted not just as economic stewards—but as enforcers of a system designed to keep sovereign nations under their thumb.
The IMF and World Bank issue loans with strings attached: “structural adjustment” programs that force developing countries to privatize essential services, slash social spending, and peg their currencies to the dollar—all in exchange for liquidity lifelines that often trap them in deeper debt cycles.
The Bank for International Settlements (BIS), the so-called “central bank of central banks,” dictates monetary norms that favor austerity and global coordination—translation: less sovereignty, more alignment with elite technocratic goals.
SWIFT, the interbank messaging system, has been weaponized to isolate adversaries from the global economy—often at Washington’s discretion. Nations like Iran, Russia, and Venezuela have been cut off from the network, demonstrating that compliance with Western norms isn’t optional—it’s enforced.
Even private global banks and credit rating agencies participate in this pressure ecosystem. Downgrades, capital outflows, and currency attacks follow any government that dares deviate from the consensus playbook. Ask Argentina. Ask Malaysia during the Asian Financial Crisis.
And now, these same institutions are eyeing programmable, centrally-issued digital currencies (CBDCs) as the ultimate tool for control: not just of governments, but of individuals—down to what they can spend, when, and where.
- “Reaganizing” Money: Stripping Power from BIS, IMF, SWIFT.
The Deep State’s power rests on global institutions—the IMF, BIS, The World Bank, SWIFT — and the opaque systems they control. “Reaganizing Money” – Trump is adopting Ronald Reagan’s signature approach: decentralizing power, slashing bureaucracy, and trusting free markets over government control. In the context of the GENIUS Act, it means reintroducing those Reagan-style principles into the financial system by empowering private-sector innovation (like stablecoins) rather than expanding centralized monetary authority like CBDCs. Trump’s stablecoin strategy directly targets their leverage:
- SWIFT bypass: Blockchain enables cross-border remittances without SWIFT rails or correspondent banking.
- IMF/BIS marginalization: Private, dollar-backed stablecoins reduce reliance on multilateral clearing systems.
- Resilient sovereignty: Nation-states can use stablecoins to access U.S. capital without negotiating with geopolitical competitors.
They’ll push back hard: lobbying, economic pressure, and even financial containment like sanctions or sanctions-aligned stability regulations.
- Expecting Backlash—and Bracing for It.
Here’s the battlefield:
| Opponent | Tools in Armory |
| BIS & IMF | Global financial regulation, policy pressure, research publications, lobbying. |
| SWIFT | Limiting infrastructure, threatening service suspensions, de-risking warnings. |
| Traditional Banks | Regulatory capture, lobbying Capitol Hill, delaying curve via Congress. |
| Deep State Bureaucrats | Executive overreach, classified legal memos, control of regulators. |
Trump’s advantage? He’s not relying on secrecy or backroom deals—he’s building public transparency, regulatory oversight, and blockchain traceability into the system.
- Real Words from FT—Acknowledging the Strategy.
A Financial Times piece recently recognized that the GENIUS Act “reinforces the dollar’s dominance in international payments” while pulling stablecoins into legal clarity (The Daily Beast, ft.com). While cautioning that stablecoins can rival banks, FT acknowledges this is a deliberate U.S. strategy—not a sneaky gateway to something else.
- So: Trap or Weapon?
- Trap theory: Stablecoins are just Fed-controlled CBDCs in disguise.
- Reality: The Genius Act excludes CBDCs and fosters private money creation—a decentralizing force.
Trump is weaponizing the Deep State’s desire for control, turning its own infrastructure outward, not inward. Trump just pulled a fast one on the Deep State’s CBDC fantasy.
- What Comes Next?
If stablecoins take off under this framework:
- Money can move around the world instantly, anytime, using digital dollars—no more waiting for banks to open i.e. new access points to U.S. capital without legacy friction.
- Countries and investors can easily invest in U.S. assets, like government bonds, without dealing with slow, expensive bankingGlobal financial flows could shift into a transparent, 24/7 dollar rails system.
- Fed overreach becomes redundant — monetary policy returns to treasury oversight and the market.
This isn’t just financial innovation—it’s political chess on a global board.
What’s Coming in Part 3?
Once the world sees the truth—that stablecoins under GENIUS aren’t Trojan horses but — a Pandora’s Gift – to countries like Malaysia and other ASEAN nations will find real strategic opportunity. Not just for innovation—but for economic sovereignty and regional power in a reshaped financial landscape.
