THE DECK | U.S. Debt “Fix” via Crypto & Gold: What’s Real & What’s Theater

Looting The Treasury; A Noble Prize Submission

TJ Baden

Sep 03, 2025

The GENIUS Act & Stablecoins: Clear Crypto Tethers

Signed into law in July 2025, the GENIUS Act mandates stablecoins be backed 1:1 with cash or U.S. Treasuries, with strict transparency and AML rules U.S.
The GENIUS Act & Stablecoins: Clear Crypto Tethers
Department of the Treasury+11The White House+11Empower+11.
The law is meant to drive renewed demand for Treasuries, reinforcing the dollar’s reserve role The White House+1.
But critics warn of hidden vulnerabilities: “rewards” loopholes for crypto users, risks of runs on stablecoins, and banks pushing back to protect deposit liquidity WIRED+2Financial Times+2.

Gold-Backed Treasuries: The Fantasy Unicorn

No evidence of actual gold-backed Treasuries being adopted. It remains speculative commentary, not policy reality Discovery Alert.
Revaluing U.S. gold reserves (officially valued at $42/oz) is technically possible—but only produces bookkeeping gains, not free money or actual dollars in circulation Discovery Alert+4news.futunn.com+4bloomberg.com+4.

Trump’s Strategic Bitcoin Reserve: Symbol, Not Solution

Trump signed an executive order in March 2025 creating a “Strategic Bitcoin Reserve” using forfeited BTC—a symbolic move to legitimize crypto, not a debt solution Wikipedia+1.

Reality Check: Tethering the Fix to Show vs Substance

ProposalReality CheckStablecoins (GENIUS Act)Tightens crypto regulation and forces stablecoins to hold Treasuries, offering more demand—but doesn't solve the root cause of overspending.Gold-backed bondsTheoretical, not implemented, and logistically complex.Bitcoin ReserveMore symbolism than strategy—crypto’s value remains volatile, not stable funding.

Insight:

None of this is a true fix—it’s context, cover, or stunt.
The real problem remains: reckless federal spending.

Stablecoins: are a partial stopgap that may slightly ease borrowing costs in the short term.
Gold/BTC measures: are theater—useful for applause, not economic stability.

What matters is tracking the actual debt trajectory, not the distractions.

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