Rich Habits Podcast: Episode 132

Title: What The GENIUS Act Means For You & Your Money w/ Nick Elledge
Date: August 25, 2025
Host(s): Austin Hankwitz & Robert Croak
Guest: Nick Elledge, Co-Founder and COO of StableCore

Episode Overview

This episode dives deep into the newly signed GENIUS Act and its profound impact on stablecoins, the broader crypto industry, and everyday financial transactions in the United States. Hosts Austin Hankwitz and Robert Croak are joined by guest Nick Elledge—fintech entrepreneur and COO of StableCore—to break down the legislation, explore the future of digital money, and discuss how these changes could affect both individuals and financial institutions.

Key Discussion Points & Insights

1. Background & Introduction to Nick Elledge

• Nick’s impressive credentials: co-founder of StableCore, former co-founder of Data Fleets (acquired for $100M+), extensive experience in fintech and private equity ([00:49]).
• StableCore’s mission: empowering community/regional banks and credit unions to offer stablecoins, tokenized deposits, and digital asset trading.

2. The GENIUS Act: A Regulatory Milestone for Crypto

What Is the GENIUS Act?

• First major U.S. federal legislation for crypto, specifically payment stablecoins ([03:01]).
  • “For years the industry has been the Wild West, but finally, crypto is putting on a suit and tie.” — Nick Elledge ([03:01])
• Key motivations: prevent collapses like Terra Luna and FTX in 2022, instill consumer and business confidence ([03:33]).

Top 5 Provisions of the GENIUS Act ([03:33]–[05:54]):

1. Definition: Payment stablecoins = digital assets for settlement/payment, redeemable 1:1 for fiat.
2. Backing: Mandates 1:1 backing with safe assets (cash/treasuries), bans algorithmic stablecoins.
3. Who Can Issue: Only banks and financial institutions with extra regulatory hurdles; excludes big tech (Google, Apple, Meta, etc.).
4. Not Deposits/No FDIC/No Interest: Stablecoins are not insured deposits; do not bear interest.
   • “They are not meant to be yield-bearing instruments.” — Nick Elledge ([05:17])
5. Not Securities: Stablecoins are not treated as securities.

Why It Matters:

• Lays the groundwork for mass stablecoin adoption; total market supply currently ~$250B, forecasted to rise to trillions ([06:35]).
• Stabilizes the market; promotes mainstream financial integration.

3. Stablecoins: How Do They Affect Everyday People?

• Reduced fees: Potentially huge savings by replacing traditional payment processors (e.g., Stripe’s 3% fee), leads to billions back in the economy ([07:07]–[08:12]).
  • “3% of 1.54 trillion is tens of billions of dollars added back to the economy.” — Austin ([07:35])
• Speed and reach: Enables instant, cross-border payments; bypasses slow/expensive legacy systems like SWIFT ([10:04]).
• Global utility: Especially valuable in inflation-prone countries wanting USD access.

4. How Stablecoins Will Be Used in Banking and Payments

• Stablecoin “Sandwiches”: Banks may handle transfers via stablecoins under the hood, so users may benefit without knowing ([11:37]).
• Bank adoption: Major payment giants (Stripe, Visa, Mastercard) are actively investing in stablecoin tech ([08:12]).
  • “They see where the puck is going… they are very much investing.” — Nick Elledge ([08:12])

5. Crypto as Collateral and Mortgage Innovation

• New FHFA directive: Fannie Mae & Freddie Mac to consider crypto as reserve assets in mortgages ([12:23]).
• StableCore enables banks to accept crypto as collateral (e.g., for mortgages/loans) without asset conversion and potential capital gains ([13:02]–[14:27]).
  • “They would only have access to it in case you default... it's going to be used as collateral.” — Nick Elledge ([14:27])

6. Tokenization & The Future of Finance

• Tokenization of Assets: Coinbase’s Brian Armstrong sees “tokenized” stocks and ETFs as the next big wave ([16:34]).
  • Nick agrees: “The future of markets is 24/7, global, and instant...blockchains are probably the best way to give traditional assets some of those characteristics.” ([16:34])
• StableCore’s roadmap: Focuses on “tokenized deposits”—combines stablecoin flexibility with deposit safety (FDIC insurance, yield, auditability) ([18:21]).
  • “It’s really exciting... you may not know it’s a tokenized deposit, but [it] enables you to have experiences at your bank you were never able to have before.” — Nick ([19:28])

Notable Quotes & Memorable Moments

• “[The GENIUS Act] established the framework for payment stablecoins...crypto is putting on a suit and tie.” — Nick Elledge ([03:01])
• “3% of 1.54 trillion is tens of billions of dollars added back to the economy.” — Austin ([07:35])
• “[Stablecoins] are not a speculation tool...it is largely a way to store value and to process payments.” — Nick Elledge ([10:04])
• “The US dollar has some of the strongest product market fit in the entire world.” — Nick Elledge ([10:22])
• “The future of markets is 24/7, global, and instant.” — Nick Elledge ([16:34])
• “Tokenized deposits... is taking the best of stablecoins... and you give it these great qualities of a deposit like the fact that it has FDIC insurance.” — Nick Elledge ([18:21])

Timestamps for Key Segments

| Timestamp | Segment Description | |------------------|-----------------------------------------------------------------------| | 00:49 – 02:32 | Introduction of Nick Elledge | | 03:01 – 05:54 | GENIUS Act: What is it & top 5 provisions | | 07:07 – 08:12 | Why stablecoins matter: Lower fees, impact on businesses | | 10:04 – 11:08 | Importance of stablecoins globally; storing value, cross-border use | | 11:37 – 12:23 | How banks are using stablecoins in payments now | | 12:23 – 14:27 | Crypto as collateral for mortgages; StableCore's role | | 16:34 – 17:40 | Tokenization of assets—future of finance | | 18:21 – 19:28 | StableCore’s roadmap: Tokenized deposits & future innovations | | 19:28 – 21:27 | Recap & practical implications for listeners |

Listener Q&A Highlights

1. Traditional vs. Roth 401k Contributions for High Earners

• Pros of Roth: Tax-free growth, future certainty even if tax laws change.
• “I like knowing that my taxes are this fortress of my nest egg. No taxes are coming out of this, right?” — Austin ([25:25])

2. Building Multifamily as House Hack

• Building can yield more equity than buying; several loan types (FHA 203k, USDA, construction-to-permanent) make it feasible ([26:21]).
• “It always takes twice as long and costs twice as much.” — Robert ([27:14])

3. Post-CD Maturity Investment Choices

• Suggestions: beef up emergency fund, tackle high-interest debt, invest in index funds/ETFs, or carefully allocate to riskier/higher-return options ([28:31]–[31:44]).

Closing Notes

• The GENIUS Act marks a major shift in the regulatory landscape for digital assets, with likely impact on mainstream banking and personal finances.
• Stablecoins are transitioning from speculative tools to integral parts of global financial infrastructure—offering new opportunities for savings, investment, and business transactions.
• Tokenized deposits could become as essential as checking accounts in the near future.
• Practical advice remains core: focus on diversification, long-term growth, and understanding the regulatory environment.

For more on the Rich Habits Podcast, financial literacy, and breaking crypto news, see the Rich Habits Network and subscribe to the newsletter.

Summary prepared by Rich Habits Podcast Summarizer | August 2025