← George Kamel
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Did Trump just rock the banking industry by signing America's first ever crypto law? Are we one step closer to crypto being a legitimate investment? Buckle up, buttercups, because we're about to answer both of those questions by breaking down the all new Genius Act. Now with more genius. Probably can't tell, but I am flexing my brain like crazy right now. By the end of the video, you'll know exactly what the Genius act is, plus what it means for banks, the crypto world, and most importantly, the you. Because you're the most important thing in my world. And hopefully by the end, you'll have a better understanding of crypto in general, which I think I should win a Nobel Peace Prize for. Okay, like I mentioned a second ago, the Genius act is the first piece of crypto legislation to make it onto the books in the US the full name the Guiding and Establishing National Innovation for US stablecoins act, which is clearly the result of locking six interns in a conference room and saying, no one leaves until it spells something and it won't make me look like a genius. And they went, got it. Who's naming these? Just name it. Stop giving things acronyms. Doge. Mega Genius. What are we doing? Simply put, the Genius act creates federal rules for stablecoins, which is a type of cryptocurrency. And the act makes sure that they're fully backed by real cash or treasuries. And the goal here is to keep things safe, clear, and honest for everyone. Now, if all that sounds Swahili to you. No, it doesn't. This does. Google it. You can Google it. It's worth a Google for real, though. The whole concept of cryptocurrency is super confusing, so let me try to break it down for you in the simplest way possible. Cryptocurrency is a type of digital or virtual money. But unlike the money in your bank account, it doesn't come from a government or a central authority like the US Treasury. Instead, it is created and tracked through something called the blockchain, which is basically a giant digital record book that keeps track of every single transaction made with a specific coin. It's like money, but fake, but also real, but also, in a very real sense, fake. Every time someone sends or receives crypto, that transaction gets added to the blockchain. It's public, secure and really hard to change, which is why its users are so gung ho. You can store your crypto in a digital wallet, which is basically an app or device that keeps your crypto safe and lets you Send or receive it. Then you can either trade it like stocks, hoping its value goes up over time, or use it to buy things from sellers that accept crypto as a form of payment. Yes, it's confusing and complicated, but somehow that is still way simpler than any crypto bro would explain it to you. And still so much easier to understand than the rules of Catan. This is real. So you can trade four of the same resource for one of anything. Unless you're on a port. Then it might be three to one or sometimes two to one, but only for that specific resource. You get two points for the longest road, but only if it's continuous and not broken by someone else's settlement. Unless you build around it somehow and forget you need exactly 10 points to win. But two of those might be secret cards you can't reveal until the very end. I don't want to play your game, grandma. Oh, my gosh. You don't know how to use an iPhone, but you understand catan. Take away your Social Security, it's an abomination. Watch your mouth, young man. Now, most traditional cryptocurrencies like Bitcoin, Ethereum, and Solana aren't tied to any kind of real asset, which means their value is mostly based on scarcity and hype, leading to significant volatility. However, some types of crypto do tie their value to a real asset, and those are called stablecoins. The goal with stablecoins is to make cryptocurrency safer, more predictable, and less volatile. And this leads us to the first important thing to know about the Genius Act. It only applies to stablecoins. It's easy to see crypto regulation in a headline and think Bitcoin, Ethereum, and that Pepe the Frog coin just became better investments. But hold your horsies and freeze your frogs, because all of those unstable coins are not helped by this new legislation. So what exactly does the Genius act do for stablecoins? That brings us to important thing to know number two. The government is getting involved. The Genius act has deputized a handful of government organizations to keep the digital streets safe in the crypto world for the very first time. Specifically, the occ, the Fed, the fdic, and the NCUA are now involved in overseeing stablecoins. Basically, you've got the world's most boring Avengers lineup out there. You've got the Fed, the, the fdic, the ncua, and Janice from accounting, who, honestly, is the most exciting one because she keeps a nerf crossbow at her desk. What? Nerf isn't cool. Anymore. So the occ, the Office of the Controller of the Currency, will now be in charge of many stablecoin companies. And it will work with other federal agencies to watch over stablecoin use in banks and credit unions. So what exactly are they keeping tabs on? Well, stablecoin companies are now required to keep one real dollar for every token they make. So basically, these government bodies will be making sure stablecoins are actually stablecoins. What's my take? Well, regulation may sound like a buzzkill here, but it actually helps bring some much needed structure to a space that's been running like a Chuck E. Cheese with no manager. Which means there's no kid crying in the ball pit, another kid eating pizza off the floor, and as we recently learned, a giant rat being taken away in handcuffs for credit card fraud. Charles. Embezzlement Cheese. It's what the E stands for, kids. Finally, important thing to know, number three, the Genius act is already affecting the banking industry. One of the big reasons crypto came about in the first place was a desire for a decentralized currency on behalf of people. Faith in the US Dollar. Translation money that operates separately from the banking system. As you can imagine, that means traditional banks haven't exactly been the biggest fans of crypto since it was designed to compete with them and work around them. Well, now that stablecoins are being regulated and as a result becoming more attractive to some investors, banks are feeling even more left out. Alami during the schoolyard pick for kickball. The result? Some of the big dogs in the industry are no longer running from crypto, but rather trying to get in on the game. Specifically, banks bank of America, Citigroup and JPMorgan Chase are all in various stages of considering launching their own stablecoin. Hey, I guess if you can't beat them, join them. Which is how I almost became a Girl Scout. Couldn't say no to the do si do. So I just did. And I know you can buy the cookies without joining editors. Do not put me in a girl. Do not put me in a Girl Scout. You know, I said don't. I got the legs for it. Just saying. Oh, that's weird. Okay, so to recap, the Genius act only applies to stablecoins. It gets a handful of government agencies involved in regulating crypto, and it's already making waves in the banking industry. And now we need to answer an important question. What exactly does the Genius act mean for everyday people like me and you? Before we tackle that question, let me ask you another one. What do you love most about your bed sheets. For me, it's the fact that they're made by Cozy Earth, one of the sponsors of today's video. Cozy Earth has sheets that are made of premium viscose from Bamboo. Translation, they are buttery soft and when you pair Cozy Earth sheets with the Cozy Earth Cuddle blanket, you will never want to leave your bed again. The same goes for their athleisure, their sleepwear. Everything they make is the coziest. And best of all, are offering you guys 40% off when you go to cozyearth.com George and use the promo code George at checkout. You can also use the link in the description. And remember, always be cozy. And you know what's not cozy? Getting targeted by phishing attacks and other types of online scams that is no fun. And it's why I use Delete Me, another sponsor of today's video. Delete Me cleans up your digital footprint by making sure your personal info isn't floating around on any data broker sites, which helps shrink the target on your back for spammers and scammers. And every few months they'll send you a customized report and letting you know exactly what they've done and how much time they've saved you. I'm already at over 100 hours saved of my precious time and they've removed me from hundreds of websites. And right now you can get 20% off their annual plans, which comes out to just nine bucks a month. Just go to JoinDeleteMe.com George or click the link in the description below. So what does the genius act mean for you? Truthfully, probably not a lot. Here's why. For starters, remember that we're only talking about stable coins here. And most of the popular coins people love to chase after, like Bitcoin and Ethereum are do not fall into this category. Those are still totally unregulated, totally volatile, and still a risky investment. So what about stablecoins? Well, personally, I still have no plans to invest in stablecoins and you shouldn't either. Look, stablecoins are obviously way safer than their unstable rivals in the crypto world. But the reality is that even the most popular stablecoins like Tether and USDC still don't have the proven track record of traditional investing options like mutual funds. Plus, when it comes to the stock market, you can actually understand what's going on. Unlike crypto, company share goes up in value, your money grows with it. It's that simple. And you should never invest in anything you do not understand. So yes, I think this regulation is good, but it's not the end all be all. Because single stocks, whole life insurance, CDs, annuities, those are all regulated, yet they remain horrible investing options. So the bottom line here, crypto is still more speculation than investment, and it's still Mary Kay for young men. And the government would have to do a whole lot more before that changes. Now, if you're dead set on putting money into crypto, and I'm not going to jump over the desk and attack you like this guy, what is, what is wrong? Okay, that was more violent than I remember, and I hope you're doing okay. The honorable Mary Kay, that's her real name, look it up. But if you're going to put any money into crypto, make sure that you're only burning your fun money on it. That is not a part of your world designed for investing and building wealth. And do not invest and build wealth until you're debt free with a fully funded emergency fund, in that order. And make sure you go into it with this understanding that you're basically playing virtual roulette with anything in this crypto world except the wheel is invisible and the dealer is a guy with hashtag bitcoin in his X bio. Best of luck. Now, while the genius act may not impact your life very much, another recent development from the Trump administration will likely affect your wallet in one way or another. I'm talking about that big, beautiful bill. And in this video, I break down exactly how it could impact you and and your money. So click here to watch it next or use the link in the description. That's it for today. Be sure to hit like on the video. Subscribe to the channel if you haven't already. Thanks for watching. We'll see you next time.