Morning Wire The GENIUS Act Explained: America’s Digital Dollar Revolution
49 snips
Aug 30, 2025 
Senator Bill Hagerty, former U.S. ambassador to Japan, discusses the GENIUS Act and its potential to reshape America’s financial future. He explains how this legislation aims to modernize payment systems while protecting individual financial freedoms. The conversation dives into the benefits of decentralized currencies, highlighting stablecoins and their stability compared to traditional cryptocurrencies. Hagerty also addresses the challenges of maintaining the U.S. dollar's dominance in the face of global digital currency trends, offering insights into economic strategies moving forward.
AI Snips
Chapters
Transcript
Episode notes
Digital Dollars Speed And Reduce Settlement Risk
- The GENIUS Act modernizes the U.S. payment system by allowing digital-dollar tokens backed 1:1 with short-term U.S. Treasury securities.
- Moving settlement to blockchain cuts multi-day clearing to seconds and reduces counterparty and currency settlement risk.
Decentralized Stablecoins Protect Liberty And Treasuries
- Decentralized private-issued stablecoins prevent the government control risks inherent in a central bank digital currency model.
- Issuers holding treasuries will shift large treasury demand to domestic holders rather than foreign governments.
Back Stablecoins With Treasuries And Protections
- Do design stablecoins to be fully backed by high-quality short-term U.S. Treasury securities and include bankruptcy protections.
- This ensures the token stays worth one dollar and protects counterparties if an issuer fails.