GENIUS Act Stablecoins: Is Your Dollar Really Being Spent Twice?
How the GENIUS Act lets stablecoin issuers buy US Treasuries with your dollars, why the government wants that, and what the video claims it means for XRP.
Key takeaways
- The GENIUS Act, signed July 18, 2025, gives regulated banks and issuers a legal framework to issue dollar stablecoins.
- Issuers typically hold your dollar in short-term US Treasury bills and keep the yield, and the law bars them from paying interest to stablecoin holders.
- According to the video, Tether and Circle's reserve fund together hold about $200 billion in short-term US government debt.
- Ripple's RLUSD can now be swapped with BlackRock's BUIDL and VanEck's VBILL tokenized funds through Securitize, per the video.
- The claim that stablecoin growth will flow into XRP and altcoins is the host's speculation, not an established outcome.
When you swap a dollar for a stablecoin, where does that dollar go? A new Bullrunners video hosted by George Lee argues that under the GENIUS Act, the answer is that it gets put to work twice: once as the token in your wallet, and once as US government debt in the issuer’s reserves. The host calls this “money duplication.”
That label is the video’s framing, not a legal term. But the mechanics behind it are real and worth understanding if you hold stablecoins, XRP or any crypto that trades against dollar tokens. This article explains what the law does, who is benefiting, where Ripple fits in, and which parts of the video are facts versus forecasts.
What is the GENIUS Act?
The GENIUS Act is a US federal law that sets rules for dollar-backed stablecoins, and Trump signed it on July 18, 2025. According to the video, it passed the Senate 68 to 30 and the House 308 to 122, with support from both parties.
A stablecoin is a crypto token designed to stay worth $1. In the video’s words, the law gives any regulated bank or issuer “the legal green light to take your money and issue you back a stablecoin. $1 in, one stablecoin out.”
The host points out that mainstream coverage calls it a “stablecoin bill,” and argues it is really about how the US government finances its debt.
What does the video mean by “money duplication”?
The video means that one deposit ends up serving two purposes. When you hand over $1, you receive a stablecoin. The issuer then uses your dollar to buy short-term US Treasury bills, which pay interest.
So at the same time:
- you hold a token worth $1 on a blockchain, and
- the issuer holds a government bond that earns yield.
The key point for holders is who keeps that yield. According to the video, the GENIUS Act prohibits issuers from paying interest to stablecoin holders. The host says issuers pocket a Treasury yield of “three or four percent” while holders get nothing, and calls that “the entire design,” not a flaw.
It is worth being precise here. Your stablecoin is a claim on the issuer, backed by its reserves. Calling this “cloning” money is a strong way to describe a reserve-backed product, and readers should treat it as the host’s opinion of the arrangement.
Why does the Treasury want stablecoins to grow?
The US Treasury sees stablecoin issuers as new buyers of government debt. The video plays a clip in which the Treasury Secretary says: “A thriving stablecoin ecosystem will drive demand for the private sector for US Treasuries.”
In another quote the video cites from February 6, the Treasury Secretary said: “We believe that with the US having the safest, soundest, best practices, we can draw in new sources of funding via a stablecoin mechanism.”
The host connects this to foreign demand. According to the video, China has been reducing its US Treasury holdings for two years, falling to around $682 billion by late 2025, the lowest since 2008. The video’s argument is that stablecoin users are replacing foreign central banks as buyers.
On size, the video says the Treasury Secretary has projected stablecoins could create $2 trillion in Treasury demand by the end of the decade, with some estimates reaching $3.7 trillion. These are projections, not guarantees.
How much US debt do stablecoin issuers hold?
According to figures the video shows from a Coin Bureau clip, the two largest issuers together control about $200 billion of short-term US government debt.
- Tether holds more US Treasuries than Germany, Saudi Arabia, South Korea or the United Arab Emirates, per the clip.
- Circle’s reserve fund, managed by BlackRock, disclosed $68.167 billion as of March 20.
- The video says Tether posted over $10 billion in profit for 2025, which the host attributes to the gap between what holders deposit and what Treasuries pay.
Which institutions are moving into stablecoins?
The video lists a long group of firms leaning in, including BlackRock, Franklin Templeton, JPMorgan, Goldman Sachs, Fidelity, State Street, Visa, Mastercard and PayPal. It gives specifics for a few of them:
| Date (per video) | Who | What happened |
|---|---|---|
| July 18, 2025 | US government | GENIUS Act signed into law |
| August 19, 2025 | State of Wyoming | Launched the Frontier stablecoin (FRNT), described as the first state-issued stablecoin in US history |
| Ongoing | Franklin Templeton | Runs the reserves for Wyoming’s stablecoin; the firm manages $1.6 trillion in assets |
| Ongoing | BlackRock | Manages Circle’s reserve fund, around $68 billion |
| September 23 | Ripple and Securitize | Enabled direct swaps between RLUSD and BlackRock’s BUIDL and VanEck’s VBILL funds |
For Wyoming’s FRNT, the interest earned on reserves goes to fund the state’s public schools, according to the video. In this case the yield goes to a public purpose rather than a private company.
Where do XRP and Ripple fit in?
The video’s main XRP-related point is the Ripple and Securitize partnership. According to the host, holders of BlackRock’s BUIDL tokenized Treasury fund and VanEck’s VBILL fund can now swap directly into Ripple’s RLUSD stablecoin, 24 hours a day, on chain. A tokenized fund is a traditional investment fund whose shares are issued as tokens on a blockchain. The video describes BUIDL as a $2 billion fund.
The host also claims XRP is part of the infrastructure behind Wyoming’s stablecoin, which he says runs through Fireblocks. That part of the transcript is unclear, so readers should treat the XRP link to FRNT as unconfirmed until they check the state’s own materials.
The video adds two claims about Ripple’s position:
- Ripple CEO Brad Garlinghouse, in a clip, says Ripple chose a “contrarian and controversial” strategy of treating banks as its customers.
- The host says Ripple is the only crypto company in America with both state and federal banking oversight. That is the video’s claim.
Will stablecoin growth push money into crypto?
That is the host’s forecast, not an established fact. The argument goes like this: every dollar converted into a stablecoin is already inside the crypto system. If holders later want yield, the video says, they may move it into altcoins, ETFs or tokenized funds on the XRP Ledger.
The video supports the broader view with a clip of Scott Melker saying stablecoins “are superior for payments” and “are going to eat the banking system.”
The host goes further, saying “the biggest institutional wave in crypto history” is already under way and that Bitcoin, XRP, HYPE and other major coins all benefit. None of that is guaranteed. Stablecoin balances can also stay in stablecoins, be redeemed for dollars, or move into tokenized Treasury funds rather than volatile coins. Treat the “flow into altcoins” idea as speculation.
A quick check for stablecoin holders
Based on the mechanics described in the video, a few questions are worth answering for any stablecoin you hold:
- Who issues it? Know whether it is Tether, Circle, Ripple, a bank or a state.
- What backs it? Check the issuer’s reserve disclosures and who manages them.
- Who keeps the yield? Under the GENIUS Act, holders do not receive interest from the issuer.
- Where is it held? A stablecoin on an exchange is a claim on the exchange as well as the issuer.
- If you chase yield elsewhere, what is the new risk? Moving out of a stablecoin to earn yield usually means taking on price, platform or counterparty risk.
What to watch next
The facts to track are concrete. Watch the reserve disclosures from Tether and Circle to see how their Treasury holdings change. Follow how much RLUSD is actually swapped with BUIDL and VBILL through Securitize, since usage matters more than announcements. Check Wyoming’s official material on FRNT to confirm how it is built and which networks it uses. And compare future stablecoin growth with the $2 trillion projection the video attributes to the Treasury Secretary. Those numbers will show whether the video’s larger thesis holds up, or stays a forecast.
Frequently asked questions
What is the GENIUS Act?
It is a US federal law on stablecoins that Trump signed on July 18, 2025. According to the video, it passed the Senate 68 to 30 and the House 308 to 122, and lets regulated banks and issuers take dollars and issue stablecoins one for one.
Do stablecoin holders earn interest under the GENIUS Act?
No. According to the video, the law prohibits issuers from paying interest to holders. The issuer keeps the yield from the Treasury bills it buys with the reserve dollars.
How many US Treasuries does Tether hold?
A Coin Bureau clip in the video says Tether holds more Treasuries than Germany, Saudi Arabia, South Korea or the UAE. Combined with Circle's reserve fund, the two control roughly $200 billion of short-term US government debt.
What did Ripple and Securitize announce?
According to the video, on September 23 Ripple partnered with Securitize so holders of BlackRock's BUIDL and VanEck's VBILL tokenized Treasury funds can swap directly into Ripple's RLUSD stablecoin, 24/7 on chain.
What is Wyoming's Frontier stablecoin?
The video says Wyoming launched the Frontier stablecoin (FRNT) on August 19, 2025, as the first state-issued stablecoin in US history. Interest earned on its reserves goes to fund Wyoming's public schools, and Franklin Templeton runs the reserves.
Full video transcript
From the video's captions, lightly formatted. Captions can mishear names and numbers, so check figures against the article above.
They just built a loophole to clone your money using stablecoins and nobody in the mainstream media is telling you what it really means. Trump signed it into law. The Treasury secretary is bragging about it on record and every single bank on Wall Street just started scrambling for a seat at the table because for every dollar you swap into a stablecoin, the bank gets to take the same dollar and spend it twice. Once as your synthetic dollar, once as fresh government debt. This is money duplication hidden in plain sight and it is the single biggest reason that your XRP bag and the rest of crypto is about to see the deepest institutional wave we've ever witnessed.
Trump just signed America's first major cryptocurrency law and this changes everything.
America's first major cryptocurrency law. Now, that is what the president just called it, not a proposal, not a discussion, a signed federal law and by the end of this video you're going to see exactly how the shadow government just gave a bank's printing press with your name on it. Why crypto is the one asset class that benefits from every single dollar they duplicate and why the smart money is already positioned before the rest of the retail crowd figures out what actually happened. If you're feeling bullish guys, like this video and if you're going to become the first millionaire in your family tree, confirm it right now by subscribing to the channel and comment in 777 down below. Guys, there is a link in that description.
You're going to see it's the first one you see. It's going to take you to the accelerate program which is absolutely life-changing. I can say that because it's changed my life and I can see in the room it's changing others. So if you want to check that out, I'm going to talk about it later on this video.
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All right bull runners, welcome back to the channel. All right, my name is George Lee. Again, I want to make everything super super clear that I will only give you my opinion. I'm not a financial advisor. All right, so before we go down the rabbit hole here, you need to understand what actually got signed because the mainstream is calling this a stablecoin bill.
This is not what this is. On July 18th, 2025, Trump signed the GENIUS Act into law. Passed the Senate 68 to 30. It passed the House 308 to 122. Bipartisan, and both sides of the aisle voted yes.
That is your first receipt right there, because when both parties agree on something this fast, you know somebody at the top wanted it to happen. Here is what the law actually does, right? It gives any regulated bank or issuer the legal green light to take your money and issue you back a stablecoin. $1 in, one stablecoin out. Sounds fair, right? Here is the part that they buried.
That same dollar you handed over does not just sit there. The bank takes it and buys short-term US Treasury bills with it. Treasuries that pay them a yield. So, now the bank is holding a paying asset from the government, and you're holding a synthetic dollar on a blockchain. The same dollar is now doing two jobs at once.
One for you, one for them. Now, that is the duplication, right? And this is not some theory. This is Trump's own Treasury Secretary saying out loud. Watch this clip.
A thriving stablecoin ecosystem will drive demand for the private sector for US Treasuries.
Come on. The Treasury Secretary of the United States is publicly telling you that stablecoins are how they plan to fund the government going forward. Not tax hikes, not budget cuts. Stablecoins. Because every time you swap a dollar into a stablecoin, they get a new buyer for the debt they cannot sell to China anymore.
And when I say cannot sell to China, that is not me speculating, right? China has been dumping US Treasuries for two straight years. Their holdings dropped to around $682 billion by late 2025, the lowest since 2008. Foreign central banks are quietly walking away, so the shadow government needed a new buyer. Now, they have got 200 million new buyers, and every single one of them is you.
Now, here's the part that should actually make you angry, right? You do not get paid a single cent of that yield. The GENIUS Act specifically prohibits the issuer from paying you interest on the stablecoin you are holding. So, you handed over a real dollar, they handed you back a synthetic one. They pocket the three or four percent Treasury yield, and you get zilch.
All right, that's not a big bug in the system. That is the entire design. That's the setup right there. Now, stick with me here because the part that is going to blow your mind is what the biggest players did the second this law got signed. Look at what a private company is doing right now, right?
That most people have no idea about. Here's what one of them. It is bigger than what most developed countries hold. And the Coin Bureau put the numbers side by side on the map so you can see it for yourself. Watch this clip right here.
Tether holds more treasuries than Germany, Saudi Arabia, South Korea, or the United Arab Emirates. When you combine Tether's position with Circle's reserve fund, which the BlackRock managed Circle reserve fund disclosed at $68.167 billion as of the 20th of March this year, the two issue block collectively controls approximately $200 billion of short-duration sovereign debt.
Bigger than Germany, bigger than Saudi Arabia, and a private stablecoin company holding more of America's debt than the entire developed nations have. Tether just posted over $10 billion in profit for 2025 doing it. $10 million in profit off the spread between what you gave and what the Treasury actually pays them. Now, here's what Bevin, the Treasury secretary himself, said about the whole play on record. Check this clip.
In a public statement on the 6th of February this year, Bevin said, and I quote, "We believe that with the US having the safest, soundest, best practices, we can draw in new sources of funding via a stablecoin mechanism."
New sources of funding via the stablecoin mechanism. He's not hiding it anymore. He is publicly telling Wall Street that stablecoins are the pipe they are using to plug the hole in the federal budget. Now, Bevin is on record projecting this market hit $2 trillion in in treasury demand by the end of the decade. Some estimates go to 3.7 trillion.
That's the size of the money duplication that we are talking about. Now, here is where it gets wild. Every single institution you have ever heard of is racing to get in front of this. BlackRock, Franklin Templeton, JP Morgan, Goldman Sachs, Fidelity, State Street, Visa, MasterCard, PayPal, you name it, right? Every one of them just leaned in.
Larry Fink at BlackRock is running the Circle Reserve Fund at around $68 billion. Franklin Templeton, a firm that manages $1.6 trillion in assets, just signed on to run the reserves for the first ever US stablecoin. Watch this, right? On August 19th, 2025, 30 days after Trump signed the Genius Act, the state of Wyoming launched the Frontier stablecoin. Frontier state-issued stablecoin in American history, the first one of it.
And the interest earned on the reserve goes to the fund Wyoming's public schools. A state government just became a stablecoin issuer using the same duplication mechanism the banks are using. But, here is the part the mainstream will not tell you. The plumbing the state Wyoming built to issue that thing actually runs Fireblocks. All right?
And second, the network handles got public, the community pulled the receipts. So, watch this clip explain it. XRP is inside the plumbing of the first state-issued stablecoin in American history. That is not a rumor, that is public, and it is not even close to the biggest Ripple deal that even dropped this month. Because September 23rd, Ripple partnered with Securitize to enable direct RUSD exchange for two of the largest tokenized funds on Earth.
BlackRock's BUIDL fund and VanEck's VBIL fund holders of BlackRock's tokenized Treasury fund can actually now swap directly into Ripple's RUSD stablecoin 24/7 on chain. The largest asset manager in the world just gave Ripple a direct pipe into its $2 billion tokenized Treasury fund. Brad Garlinghouse has been telling anyone who would listen for years Ripple's strategy was contrarian. All right? Check this out.
We Ripple took a contrarian and controversial strategy approach to our how we went to market early on, and that made us unpopular in crypto. Early on, Ripple said, "Banks are our customers. If we want these technologies to have the biggest impact on the largest number of people, banks are where the touch point for people in their financial services relationships.
Banks are customers, and when the reset of crypto was screaming burn it all down, Ripple was building the bridge. Now, the bridge is live. Ripple is the only crypto company in America with both state and federal banking oversight. And their stablecoin USD is already accepted as a one-off ramp for the biggest tokenized fund BlackRock has ever launched. Ripple has been building for the exact day for 2 years.
This is the payoff. So, let me pull the whole thing into one image for you. The banks want the yield, and the government wants the debt buyers. And crypto, Bitcoin, XRP, hype, the majors, you name it, every single one of them actually wins from the same institutional flow. Because once the plumbing is built for stablecoins, the same rails carry every other asset.
Scott Melker actually said it clean on The Daily Wolf. Watch this clip.
Stablecoins are superior for payments. They're going to eat the banking system, and they are now a threat to other countries that are looking to dedollarize. We even have a story out of China where they're looking
They are going to eat the banking system. That is not a Nick take, all right? That is the mainstream Yahoo Finance take. And when the banking system gets eaten from the inside, the crypto layer is what is left standing on top. Now, think about what that actually means for your portfolio.
Every single dollar that gets duplicated into a stablecoin is a dollar that just entered the crypto ecosystem. It might be sitting in USDT or USDC or ARUSD today, but the second the holder decides they want yield, they move it into an altcoin, or an ETF, or a tokenized fund on the XRP ledger. That is the setup we never had before. Trillions of dollars of new capital sit in one click away from every major asset. The potential energy for that flow to move into altcoins is bigger than anything we have seen in this cycle.
And every institution I just named knows it. That is why they are positioning right now, quietly, while the retail crowd is still arguing about the last week's price action. So, right now, we are standing on the edge of a bridge. And on one side is the old dollar system quietly getting duplicated behind your back to plug the federal hole. On the other side is actually the new rails, R USD, FRNT, BUIDL, the tokenized layer every institution positioning at the same time.
And the biggest institutional wave in crypto history is not something that is about to happen. It is already happening. It was signed into law on July 18th. You were just not told what it actually meant. And I've made my choice.
All right, my family is positioned, my team is ready. Now it's your turn. Every time you refresh your phone, another headline drops about another institution. And BlackRock, Wyoming, Ripple, Franklin Templeton, and you are all sitting there watching your bag do nothing while Wall Street quietly builds the infrastructure they are actually going to use to price you out. Now I get it.
I've been that guy staring at the screen at 3:00 in the morning wondering if I was the last one in the room. It's not a nice feeling. So let me show you what happens when somebody stops watching from the sidelines and actually walks through the door before it closes on them. One of our members, Brett Cummings, walked into the accelerator holding XRP that was sitting idle, upside down under his cost basis with no real plan. That was exactly the position the duplication trap is designed to keep retail stuck in.
Holding a bag that is not working for you while the institutions on the other side of your trade earn yield off the same dollars that you handed them. Brett did not just wait it out. His coach, James Porter, walked him through swapping a portion of his XRP into hype, opening a position on HyperLiquid, and putting the crypto he was already holding to work. He is now earning over 50% APY on that position. Results are not typical, guys, so do not be typical.
Inside the accelerator right now, you have got operators who came from Wall Street. You have retired guys who are protecting what they built, and people who found XRP 3 months ago. And they are trying to do this right the first time. Weekly calls with a research team, one-on-one coaching, and a group chat where the conversation is the actual signal. So, the private intelligence network link in the description takes you to a 15-minute call with our team.
If you have over $50,000 or more in crypto just sitting idle, then you this is perfect for you. All right, we'll actually walk you through your portfolio and tell you whether the accelerator is the right move for where you're at. And if you are already positioned for what the stablecoin wave is about to do to the majors, we'll tell you that. We'll literally say it. But you do not find that out by sitting on the sidelines.
You find it out by booking the call. Okay, crypto carries risk and past performance does not guarantee future results, okay? This again is education, it's not financial advice. But guys, as always, I'll see you at the top. Stay bullish.
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Education and commentary only, not financial advice. Crypto is volatile and you can lose money. Do your own research and speak to a qualified advisor before making investment decisions. Figures and quotes are as reported in the video on October 7, 2026 and may have changed since.
