What We Learned from Gold: The Paper Problem
Bitcoin is not the first hard asset to face this challenge. The gold market offers a cautionary tale.
For decades, gold investors have dealt with “paper gold” systems—unallocated accounts, synthetic ETFs, and derivatives with little or no linkage to actual metal. These claims often outnumber real reserves many times over, leading to widespread suspicion of price distortion and systemic misrepresentation.
Most gold investors don’t own gold—they own a claim to gold. And they have no way to prove it.
Bitcoin gives us the tools to break this cycle. But only if companies choose to use them.
Key Provisions of the GENIUS Act
Definition and Classification of Payment Stablecoins:
The GENIUS Act defines a payment stablecoin as a digital asset pegged to a fixed monetary value (e.g., the U.S. dollar) used for payments or settlement. These are explicitly classified as distinct from securities, commodities, or investment company products, ensuring they are regulated under a specialized framework rather than by the Securities and Exchange Commission (SEC). This prevents stablecoins from being treated as investment products and clarifies their role as payment instruments.
The bill also ensures that custodied stablecoin assets are not classified as liabilities on issuers’ financial statements, aligning with the repeal of SEC Staff Accounting Bulletin 121 (SAB 121), which had previously required such classification.
Licensing and Regulatory Oversight:
Permitted Payment Stablecoin Issuers (PPSIs): Only specific entities can issue stablecoins, including:
Subsidiaries of insured depository institutions (e.g., banks) approved by their primary federal regulator, such as the Federal Reserve.
Federal qualified nonbank payment stablecoin issuers, regulated by the Office of the Comptroller of the Currency (OCC).
State-qualified payment stablecoin issuers, approved by state regulators, for issuers with a market cap below $10 billion. Issuers exceeding $10 billion face federal oversight from the Federal Reserve and OCC.
Application Process: Issuers must demonstrate financial stability, provide background information on key personnel, and meet safety and soundness standards. Federal regulators have 120 days to approve or deny applications, with denials possible if activities are deemed unsafe or unsound.
State vs. Federal Regulation: Issuers with less than $10 billion in stablecoins can operate under state regulatory regimes, with a waiver process for larger issuers to remain state-regulated. Larger issuers are subject to federal oversight to mitigate systemic risks.
Technology Companies Issuing Stablecoins:
The GENIUS Act does not explicitly ban technology companies from issuing stablecoins but imposes strict conditions. Public companies not predominantly engaged in financial activities (e.g., Big Tech firms like Apple, Meta, or Amazon) must obtain approval from the Stablecoin Certification Review Committee, which assesses risks to financial stability, consumer data protection, and the tying of stablecoin services to other business activities.
This provision applies only to public non-financial companies, meaning private tech firms (e.g., Stripe or X) are not subject to this specific restriction but must still meet general licensing requirements. Critics, including Senator Elizabeth Warren, argue that the bill’s framework could still allow tech giants to enter the stablecoin market, potentially leveraging user data or creating competitive imbalances.
Thus, while technology companies are not excluded, they face significant regulatory hurdles, and the bill’s structure favors entities with financial expertise, such as banks or regulated nonbank financial institutions.
Reserve and Transparency Requirements:
1:1 Reserve Backing: Stablecoin issuers must maintain a 1:1 reserve of high-quality, liquid assets (e.g., cash, U.S. Treasury bills) to ensure redemption at face value and prevent de-pegging incidents.
Transparency and Audits: Issuers are required to submit monthly liquidity reports certified by CEOs and CFOs, detailing reserve composition and the number of stablecoins in circulation. Annual audits by registered public accounting firms are mandatory to ensure solvency and maintain market trust.
Reserve Restrictions: Reserves must be held in safe, liquid assets and cannot be lent out, though concerns remain about whether tokenized assets or offshore accounts could introduce risks.
Consumer Protections and Insolvency:
Priority in Insolvency: In the event of an issuer’s insolvency, stablecoin holders have priority over other claims, with reserves considered “bankruptcy remote” to protect customer funds. This applies to both federal and state insolvency proceedings, superseding conflicting state laws.
Study on Insolvency Risks: The latest draft mandates a study within three years to examine the implications of stablecoin insolvency, including whether customers can be repaid and if bankruptcy laws need adjustments. This addresses concerns about systemic risks but does not provide immediate FDIC-like guarantees.
Consumer Protection Standards: States can impose consumer protection requirements on out-of-state issuers only to the extent they align with federal law, preventing excessive state-level restrictions while maintaining federal preemption.
Anti-Money Laundering (AML) and Know-Your-Customer (KYC) Compliance:
Stablecoin issuers are classified as financial institutions under the Bank Secrecy Act (BSA), requiring compliance with AML and KYC regulations to prevent illicit activities like money laundering or terrorist financing.
Enhanced provisions in the latest draft strengthen AML/KYC requirements, addressing concerns raised by Democrats about potential misuse.
National Security and Foreign Issuers:
The bill includes provisions to address national security concerns, particularly regarding foreign stablecoin issuers operating in the U.S. A Stablecoin Certification Review Committee (comprising the Treasury Secretary, Federal Reserve Chair or Vice Chair, and FDIC Chair) evaluates foreign issuers to ensure compliance with U.S. standards.
The updated draft expands on reciprocity for overseas issuers, requiring reserve compliance and coordination with international regulators to align rules and reduce conflicts.
Interoperability and Standards:
The bill mandates that federal regulators, in consultation with the National Institute of Standards and Technology and state governments, establish standards to promote compatibility and interoperability among stablecoin issuers, facilitating seamless transactions.
This includes reciprocal recognition arrangements with other jurisdictions to enhance global compatibility.
Ethics and Conflict of Interest Concerns:
The latest draft addresses Democratic concerns about conflicts of interest, particularly regarding President Trump’s ties to the USD1 stablecoin issued by World Liberty Financial. However, it does not prohibit elected officials or their families from issuing stablecoins, a point of contention raised by Senator Warren.
Critics argue that the bill lacks sufficient safeguards to prevent potential corruption, especially given transactions like the $2 billion deal involving USD1 and an Abu Dhabi firm.
Ethereum price analysis
Ethereum’s technical indicators on the daily timeframe show mixed signals. Key momentum indicators, the Relative Strength Index (RSI) reads 65 and generates a sell signal as ETH slips under 70 or the “overbought” zone. Moving Average Convergence Divergence (MACD) flashes green histogram bars above the neutral line, signaling an underlying bullish momentum in Ether.
ETH is close to its resistance at $2,746, the 50% Fibonacci retracement of the decline from the December 2024 peak of $4,107 to the April 10 low of $1,385. The altcoin could find support at $2,226, the upper boundary of a Fair Value Gap (FVG) on the daily price chart.
The weekly price chart supports a bullish thesis for ETH. RSI is above 50 and MACD shows green histogram bars, signaling underlying positive momentum in the Ethereum price trend.
Two key resistances for Ether to test on the weekly timeframe are $2,605 and $2,921, close to the psychologically important $3,000 level. The two resistances represent the upper/lower boundaries of FVGs on the weekly timeframe.
Ethereum could find support at $2,323 or $1,873 in the event of a correction.
Shark Tank's Kevin O’Leary Says Warren Wrong to 'Tie' Stablecoin Bill to Trump
O’Leary argued that Senator Elizabeth Warren’s objections to the GENIUS Act distort its purpose and threaten bipartisan progress.
Kevin O’Leary criticized Senator Elizabeth Warren for tying the GENIUS Act to President Donald Trump’s crypto ties, calling her stance “un-American.”
The GENIUS Act, which would regulate stablecoins, advanced in the Senate on Monday after key Democrats backed a revised draft.
Warren warned the bill could enable the President to profit from USD1, a Trump family-linked stablecoin tied to a $2 billion foreign crypto deal.
Kevin O’Leary responded Monday to U.S. Senator Elizabeth Warren's (D-MA) latest attacks on the Senate’s stablecoin bill, rejecting her claims as “completely deranged” and warning that politicizing the legislation could undermine the U.S.’s position in global finance.
“She’s confusing politics with progress, and this time, it could cost America dearly,” the Shark Tank investor and entrepreneur tweeted Monday. He added that, “This bill has nothing to do with Trump or meme coins.”
Initially reliant on natural gas turbines, Colossus faced criticism for nitrogen oxide emissions. The 150 MW substation, completed in early 2025, reduced turbine use by half, with Megapacks providing cleaner backup power. By fall 2025, xAI expects the second substation to come online. Once the second substation is online, the remaining turbines will only be used for backup, reducing the project’s carbon footprint.
Tesla Energy’s Q1 2025 performance, with a 156% year-over-year increase and 10.4 GWh of storage deployed, supports xAI’s needs. Tesla’s Megapack factory in Waller County, Texas, set to create 1,500 jobs, signals further commitment to scaling energy solutions for projects like Colossus.
For the week of May 12-18, China reported 11.1k insurance registrations for Tesla. 🇨🇳
The week is up 262.5% from last week and -19.9% year-over-year. The quarter is -5.6% QoQ and -24.2% YoY. This quarter is -43.5% vs. 24Q3 the best quarter after 7 weeks. YTD is at -6.5% YoY.
Dimon has long been skeptical of Bitcoin, labeling it a scam that he had no interest in buying in 2018 and calling it “worthless” during the 2021 crypto bull market.
“I’ve always been deeply opposed to crypto, Bitcoin, etc.,” he said during a Senate Banking Committee hearing in 2023. “The only true use case for it is criminals, drug traffickers, money laundering, tax avoidance.”
“If I were the government, I’d close it down,” he said.
At the 2024 World Economic Forum in Davos, Switzerland, Dimon said Bitcoin “does nothing. I call it the pet rock,” which came after the asset topped $100,000 for the first time.
Robinhood submitted a formal 42-page proposal to the U.S. Securities and Exchange Commission (SEC) requesting the creation of a federal regulatory framework for the issuance and trading of tokenized RWAs. This is more than just a compliance tweak—it’s a structural rethinking of how assets can be issued, settled, and tracked in the U.S. financial system. If accepted, it could signal the beginning of a scalable, legally sound foundation for tokenized markets in America.
What We Learned from Gold: The Paper Problem
Bitcoin is not the first hard asset to face this challenge. The gold market offers a cautionary tale.
For decades, gold investors have dealt with “paper gold” systems—unallocated accounts, synthetic ETFs, and derivatives with little or no linkage to actual metal. These claims often outnumber real reserves many times over, leading to widespread suspicion of price distortion and systemic misrepresentation.
Most gold investors don’t own gold—they own a claim to gold. And they have no way to prove it.
Bitcoin gives us the tools to break this cycle. But only if companies choose to use them.
Key Provisions of the GENIUS Act
Definition and Classification of Payment Stablecoins:
The GENIUS Act defines a payment stablecoin as a digital asset pegged to a fixed monetary value (e.g., the U.S. dollar) used for payments or settlement. These are explicitly classified as distinct from securities, commodities, or investment company products, ensuring they are regulated under a specialized framework rather than by the Securities and Exchange Commission (SEC). This prevents stablecoins from being treated as investment products and clarifies their role as payment instruments.
The bill also ensures that custodied stablecoin assets are not classified as liabilities on issuers’ financial statements, aligning with the repeal of SEC Staff Accounting Bulletin 121 (SAB 121), which had previously required such classification.
Licensing and Regulatory Oversight:
Permitted Payment Stablecoin Issuers (PPSIs): Only specific entities can issue stablecoins, including:
Subsidiaries of insured depository institutions (e.g., banks) approved by their primary federal regulator, such as the Federal Reserve.
Federal qualified nonbank payment stablecoin issuers, regulated by the Office of the Comptroller of the Currency (OCC).
State-qualified payment stablecoin issuers, approved by state regulators, for issuers with a market cap below $10 billion. Issuers exceeding $10 billion face federal oversight from the Federal Reserve and OCC.
Application Process: Issuers must demonstrate financial stability, provide background information on key personnel, and meet safety and soundness standards. Federal regulators have 120 days to approve or deny applications, with denials possible if activities are deemed unsafe or unsound.
State vs. Federal Regulation: Issuers with less than $10 billion in stablecoins can operate under state regulatory regimes, with a waiver process for larger issuers to remain state-regulated. Larger issuers are subject to federal oversight to mitigate systemic risks.
Technology Companies Issuing Stablecoins:
The GENIUS Act does not explicitly ban technology companies from issuing stablecoins but imposes strict conditions. Public companies not predominantly engaged in financial activities (e.g., Big Tech firms like Apple, Meta, or Amazon) must obtain approval from the Stablecoin Certification Review Committee, which assesses risks to financial stability, consumer data protection, and the tying of stablecoin services to other business activities.
This provision applies only to public non-financial companies, meaning private tech firms (e.g., Stripe or X) are not subject to this specific restriction but must still meet general licensing requirements. Critics, including Senator Elizabeth Warren, argue that the bill’s framework could still allow tech giants to enter the stablecoin market, potentially leveraging user data or creating competitive imbalances.
Thus, while technology companies are not excluded, they face significant regulatory hurdles, and the bill’s structure favors entities with financial expertise, such as banks or regulated nonbank financial institutions.
Reserve and Transparency Requirements:
1:1 Reserve Backing: Stablecoin issuers must maintain a 1:1 reserve of high-quality, liquid assets (e.g., cash, U.S. Treasury bills) to ensure redemption at face value and prevent de-pegging incidents.
Transparency and Audits: Issuers are required to submit monthly liquidity reports certified by CEOs and CFOs, detailing reserve composition and the number of stablecoins in circulation. Annual audits by registered public accounting firms are mandatory to ensure solvency and maintain market trust.
Reserve Restrictions: Reserves must be held in safe, liquid assets and cannot be lent out, though concerns remain about whether tokenized assets or offshore accounts could introduce risks.
Consumer Protections and Insolvency:
Priority in Insolvency: In the event of an issuer’s insolvency, stablecoin holders have priority over other claims, with reserves considered “bankruptcy remote” to protect customer funds. This applies to both federal and state insolvency proceedings, superseding conflicting state laws.
Study on Insolvency Risks: The latest draft mandates a study within three years to examine the implications of stablecoin insolvency, including whether customers can be repaid and if bankruptcy laws need adjustments. This addresses concerns about systemic risks but does not provide immediate FDIC-like guarantees.
Consumer Protection Standards: States can impose consumer protection requirements on out-of-state issuers only to the extent they align with federal law, preventing excessive state-level restrictions while maintaining federal preemption.
Anti-Money Laundering (AML) and Know-Your-Customer (KYC) Compliance:
Stablecoin issuers are classified as financial institutions under the Bank Secrecy Act (BSA), requiring compliance with AML and KYC regulations to prevent illicit activities like money laundering or terrorist financing.
Enhanced provisions in the latest draft strengthen AML/KYC requirements, addressing concerns raised by Democrats about potential misuse.
National Security and Foreign Issuers:
The bill includes provisions to address national security concerns, particularly regarding foreign stablecoin issuers operating in the U.S. A Stablecoin Certification Review Committee (comprising the Treasury Secretary, Federal Reserve Chair or Vice Chair, and FDIC Chair) evaluates foreign issuers to ensure compliance with U.S. standards.
The updated draft expands on reciprocity for overseas issuers, requiring reserve compliance and coordination with international regulators to align rules and reduce conflicts.
Interoperability and Standards:
The bill mandates that federal regulators, in consultation with the National Institute of Standards and Technology and state governments, establish standards to promote compatibility and interoperability among stablecoin issuers, facilitating seamless transactions.
This includes reciprocal recognition arrangements with other jurisdictions to enhance global compatibility.
Ethics and Conflict of Interest Concerns:
The latest draft addresses Democratic concerns about conflicts of interest, particularly regarding President Trump’s ties to the USD1 stablecoin issued by World Liberty Financial. However, it does not prohibit elected officials or their families from issuing stablecoins, a point of contention raised by Senator Warren.
Critics argue that the bill lacks sufficient safeguards to prevent potential corruption, especially given transactions like the $2 billion deal involving USD1 and an Abu Dhabi firm.
!summarize #juansoto #mlb #nymets
!summarize #joebiden #cancer #healthcare #politics #president
!summarize #cbs #60minutes #media
!summarize #iran #china #ivyleague #unitedstates #universities
Ethereum price analysis
Ethereum’s technical indicators on the daily timeframe show mixed signals. Key momentum indicators, the Relative Strength Index (RSI) reads 65 and generates a sell signal as ETH slips under 70 or the “overbought” zone. Moving Average Convergence Divergence (MACD) flashes green histogram bars above the neutral line, signaling an underlying bullish momentum in Ether.
ETH is close to its resistance at $2,746, the 50% Fibonacci retracement of the decline from the December 2024 peak of $4,107 to the April 10 low of $1,385. The altcoin could find support at $2,226, the upper boundary of a Fair Value Gap (FVG) on the daily price chart.
The weekly price chart supports a bullish thesis for ETH. RSI is above 50 and MACD shows green histogram bars, signaling underlying positive momentum in the Ethereum price trend.
Two key resistances for Ether to test on the weekly timeframe are $2,605 and $2,921, close to the psychologically important $3,000 level. The two resistances represent the upper/lower boundaries of FVGs on the weekly timeframe.
Ethereum could find support at $2,323 or $1,873 in the event of a correction.
Shark Tank's Kevin O’Leary Says Warren Wrong to 'Tie' Stablecoin Bill to Trump
O’Leary argued that Senator Elizabeth Warren’s objections to the GENIUS Act distort its purpose and threaten bipartisan progress.
Kevin O’Leary criticized Senator Elizabeth Warren for tying the GENIUS Act to President Donald Trump’s crypto ties, calling her stance “un-American.”
The GENIUS Act, which would regulate stablecoins, advanced in the Senate on Monday after key Democrats backed a revised draft.
Warren warned the bill could enable the President to profit from USD1, a Trump family-linked stablecoin tied to a $2 billion foreign crypto deal.
Kevin O’Leary responded Monday to U.S. Senator Elizabeth Warren's (D-MA) latest attacks on the Senate’s stablecoin bill, rejecting her claims as “completely deranged” and warning that politicizing the legislation could undermine the U.S.’s position in global finance.
“She’s confusing politics with progress, and this time, it could cost America dearly,” the Shark Tank investor and entrepreneur tweeted Monday. He added that, “This bill has nothing to do with Trump or meme coins.”
Initially reliant on natural gas turbines, Colossus faced criticism for nitrogen oxide emissions. The 150 MW substation, completed in early 2025, reduced turbine use by half, with Megapacks providing cleaner backup power. By fall 2025, xAI expects the second substation to come online. Once the second substation is online, the remaining turbines will only be used for backup, reducing the project’s carbon footprint.
Tesla Energy’s Q1 2025 performance, with a 156% year-over-year increase and 10.4 GWh of storage deployed, supports xAI’s needs. Tesla’s Megapack factory in Waller County, Texas, set to create 1,500 jobs, signals further commitment to scaling energy solutions for projects like Colossus.
For the week of May 12-18, China reported 11.1k insurance registrations for Tesla. 🇨🇳
The week is up 262.5% from last week and -19.9% year-over-year. The quarter is -5.6% QoQ and -24.2% YoY. This quarter is -43.5% vs. 24Q3 the best quarter after 7 weeks. YTD is at -6.5% YoY.
!summarize #bigtech #elonmusk #tesla #tariffs #automotive
Dimon has long been skeptical of Bitcoin, labeling it a scam that he had no interest in buying in 2018 and calling it “worthless” during the 2021 crypto bull market.
“I’ve always been deeply opposed to crypto, Bitcoin, etc.,” he said during a Senate Banking Committee hearing in 2023. “The only true use case for it is criminals, drug traffickers, money laundering, tax avoidance.”
“If I were the government, I’d close it down,” he said.
At the 2024 World Economic Forum in Davos, Switzerland, Dimon said Bitcoin “does nothing. I call it the pet rock,” which came after the asset topped $100,000 for the first time.
!summarize #juansoto #nymets #mlb
!summarize #tedcruz #senator #trump #politics #economy #taxes
Robinhood submitted a formal 42-page proposal to the U.S. Securities and Exchange Commission (SEC) requesting the creation of a federal regulatory framework for the issuance and trading of tokenized RWAs. This is more than just a compliance tweak—it’s a structural rethinking of how assets can be issued, settled, and tracked in the U.S. financial system. If accepted, it could signal the beginning of a scalable, legally sound foundation for tokenized markets in America.
!summarize #trump #comey #assassination
!summarize #yields #economy #investing #finance