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Trump Just Replaced the Dollar With Cryptocurrency

0h 18m video Published Jul 3, 2026 Transcribed Jul 17, 2026 M Minority Mindset
Intermediate 4 min read For: Investors and individuals interested in macroeconomic trends, U.S. debt, and cryptocurrency's role in finance.

AI Summary

The video discusses a significant shift in how the United States government finances its nearly $40 trillion national debt, moving from traditional lenders like foreign countries and the Federal Reserve to cryptocurrency companies such as Tether. This change, driven by the newly passed Genius Act, requires stablecoin issuers to back their assets with U.S. Treasuries, creating a new class of debt holders. The video explores the implications for the dollar's status as a global reserve currency and the risks and opportunities this presents.

[00:01]
National Debt and Shifting Lenders

The U.S. national debt is approaching $40 trillion. Historically, the government borrowed from foreign countries (China, UK, Japan), American investors, and the Federal Reserve. Now, it is turning to cryptocurrency companies to fill the debt gap.

[01:22]
Tether's Massive Debt Holdings

Tether, a cryptocurrency company, now owns over $100 billion of U.S. debt, surpassing countries like Germany or the UAE. By the end of 2026, Tether could be among the top 10 largest lenders to the U.S. government.

[02:05]
The Genius Act

President Trump signed the Genius Act, which requires stablecoin companies to back their stablecoins with U.S. Treasuries and dollars. This is intended to generate demand for U.S. debt and cement the dollar's status as the global reserve currency.

[03:41]
Tether's Explosive Growth

Tether's valuation grew from $10 million in 2016 to $185 billion in 2026, a growth of over 1 million percent. In comparison, SpaceX grew 17,000% and Nvidia 6,700% over the same period.

[05:13]
Three Reasons for the Shift

The U.S. government needs new lenders because: 1) it has nearly $40 trillion in debt and spends billions daily; 2) traditional lenders like China are selling U.S. debt, and the Fed's lending causes inflation; 3) the dollar's status as a reserve currency is threatened.

[08:26]
How Tether Makes Money

When users buy USDT (stablecoin), Tether must hold an equivalent amount of U.S. dollars, which it lends to the government via Treasuries, earning 4-5% interest. With about 100 employees, Tether made over $10 billion in 2025.

[10:37]
Risk 1: Stablecoin Crash

If trust in stablecoins collapses, Tether would have to sell its U.S. debt holdings, potentially crashing the U.S. bond market and impacting global markets.

[11:20]
Risk 2: Interest Rate Sensitivity

Tether's profits depend on high interest rates set by the Fed. If rates drop, Tether's income stream diminishes, posing risks to its business and the bond market.

[12:18]
Risk 3: Bitcoin Crash

Historically, Bitcoin crashes have been good for stablecoins as investors seek safety. So this risk is minimal.

[12:57]
Historical Backing of the Dollar

The dollar was backed by gold until 1971, then by oil (petrodollar) after a 1974 agreement with Saudi Arabia. Now, it is shifting to being backed by cryptocurrency through stablecoins.

The U.S. government is increasingly relying on cryptocurrency companies like Tether to finance its debt, a shift driven by the Genius Act. While this creates new opportunities, it also introduces risks such as stablecoin crashes and interest rate sensitivity that could impact global markets.

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"Title exaggerates slightly; the dollar isn't replaced, but cryptocurrency is becoming a key backstop for U.S. debt."

Mentioned in this Video

Study Flashcards (8)

What is the Genius Act?

easy Click to reveal answer

A law signed by President Trump requiring stablecoin issuers to back their assets with U.S. Treasuries and dollars.

02:05

How much U.S. debt does Tether own?

easy Click to reveal answer

Over $100 billion.

01:22

What was Tether's valuation in 2016 and 2026?

medium Click to reveal answer

$10 million in 2016, $185 billion in 2026.

03:41

How does Tether make money?

medium Click to reveal answer

By holding U.S. Treasuries that pay 4-5% interest on the dollars backing its USDT stablecoin.

08:26

What are the three risks mentioned for this new system?

hard Click to reveal answer

1) A stablecoin crash forcing Tether to sell Treasuries; 2) Interest rate cuts reducing Tether's income; 3) Bitcoin crash (historically minimal risk).

10:37

What backed the U.S. dollar before cryptocurrency?

medium Click to reveal answer

Gold until 1971, then oil (petrodollar) after a 1974 agreement with Saudi Arabia.

12:57

How much profit did Tether make in 2025?

medium Click to reveal answer

Over $10 billion.

10:07

What is the purpose of the Genius Act according to the White House?

medium Click to reveal answer

To generate increased demand for U.S. debt and cement the dollar's status as the global reserve currency.

02:19

💡 Key Takeaways

📊

Tether's Debt Holdings

Tether now owns more U.S. debt than entire countries like Germany, highlighting the scale of this shift.

01:22
💡

Genius Act Mandate

The law forces stablecoin companies to buy U.S. debt, creating a new, captive lender base for the government.

02:05
📊

Tether's Growth Comparison

Tether's 1 million percent growth dwarfs that of major companies like Nvidia and SpaceX, showing the rapid expansion of stablecoins.

03:41
💡

Systemic Risk of Stablecoin Crash

A loss of trust in stablecoins could trigger a sell-off of U.S. Treasuries, potentially crashing the bond market and global economy.

10:37
⚖️

Evolution of Dollar Backing

The dollar's backing has shifted from gold to oil to cryptocurrency, reflecting changing global financial dynamics.

12:57

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AI-generated clip ideas for Shorts based on the transcript

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[00:01] approaching $40 trillion of national debt and while most people are worried spending, there's a quiet shift happening with our money that most people are completely missing. I'll show you. In the past, when the United States

[00:15] have, it would borrow money from countries like China, the United Kingdom, and Japan. It would borrow money from American investors, that's banks, institutions, and regular people, and it would borrow money from the

[00:28] changing. Today, when the United States government spends money that it doesn't have, it's now not turning to foreign countries or American investors or even the Federal Reserve Bank, it's turning to cryptocurrency companies to fill that

[00:41] debt. This is not an accident, it's happening by design and in this video, I'm going to show you how this change is going to impact your money and what this So, let me break it all down. By the way, I'm coming out to downtown

[00:54] Manhattan on July 8th at 5:00 p.m. Eastern Time. So, if you're around and you'd like to meet me, meet my team, come and hang out. It's a free meet and I would love to meet you. Come say hello on July 8th at 5:00 p.m. Eastern Time in

[01:09] interested, all you got to do just send me your name and email and my team will send you the actual location closer to because we don't want to publish it on YouTube. The form is down in the description. All you got to do is just

[01:22] send you where the meet and greet is exactly going to be, but it's going to be in downtown Manhattan on July 8th at 5:00 p.m. Eastern Time. Tether is a cryptocurrency company and they now own more than $100 billion of United States

[01:35] debt. Now, yes, Tether owns more United States debt than countries like Germany or the UAE, but the bigger part that you want to pay attention to is how fast States government because it is anticipated that by the end of 2026,

[01:50] Tether could be one of the 10 top largest lenders to the United States the cryptocurrency companies doing this. Other cryptocurrency companies like Circle and Dai are doing the exact same thing, buying up United States debt. And

[02:05] accelerating so much right now is because President Trump signed a new law called the Genius Act, which requires these cryptocurrency companies to buy up United States debt if they have stablecoins. Why is President Trump

[02:19] doing this? Well, let me read you an excerpt directly from the White House website. The Genius Act will generate increased demand for United States debt and cement the dollar's status as the global reserve currency by requiring

[02:33] stablecoin issuers to back their assets with Treasuries and the United States dollar. In other words, it's President Trump's way to help bring value to the United States dollar. Now, just to run on the same page, Tether is a crypto

[02:45] company that creates stablecoins, and the stablecoin that it creates is called USDT. This USDT is a cryptocurrency which is backed by the United States dollar. So, instead of using the dollar, you can use

[02:59] cryptocurrency version of the United States dollar, and it is backed by the United States dollar. So, one USDT is one United States dollar. Now, the becoming more popular is because around the world, many people trust the United

[03:14] States dollar because it's the world's reserve currency, but it can be hard to actually get access to this dollar. But, cryptocurrency is available around the world, so somebody in a third world country can use the United States dollar

[03:26] by using stablecoins instead of having to actually get the United States to emphasize here is that one USDT, the stablecoin, is worth one United States dollar, and Tether has to own one United States dollar for every one USDT out

[03:41] requires. But, the real reason why you want to pay attention to this right now is because of how fast this is changing money. Take a look. 10 years ago in 2016, Tether was valued at around $10

[03:54] million. Fast forward to 2026, 10 years later, Fast forward to 2026, 10 years later, and now Tether is valued at around $185 billion. That is well over 1

[04:07] million percent growth over the course of a decade, and let me put that in perspective for you. Over the last 10 years, SpaceX has seen around 17,000% growth, and Nvidia has only only seen about 6,700%

[04:24] growth, while Tether has seen well over 1 million percent growth. Again, this is one of the reasons why I put together a brand new investing masterclass because these changes with the government, the Federal Reserve Bank, are creating what

[04:37] I call the perfect storm. Big picture changing happening with our economy, the dollar, and geopolitics all at the same time, which is creating a new and unique investment opportunity. And if you watch my investing masterclass, I'll show you

[04:49] what that investment opportunity is. It's a free masterclass. When you sign access to Market Briefs, which is my newsletter for investors, completely you haven't seen the masterclass yet, I have that link for you down in the

[05:01] description below. Now, before I talk about the risks and concerns about the United States debt being owned so heavily by cryptocurrency companies, let me talk about the three reasons why the United States government wants this to

[05:13] United States government now has almost $40 trillion worth of national debt, and we are spending billions of dollars every single day. Yep, every day that we constantly needs more lenders lending money to the United States government

[05:29] spending money the way that it is. Problem number two is that the old were before. Foreign countries like China, which were one of the largest lenders to the United States, are now sellers of United States

[05:43] the world that are lending less money to the United States government. When the Federal Reserve Bank keeps lending money to the government, that causes inflation. We already have an inflation problem. Why? Because although it's

[05:57] called the Federal Reserve Bank, they're not a bank. You wouldn't I can't go there to deposit money. It's not sitting on any cash reserves, and it's not Reserve Bank lends money to the government, that money has to be printed

[06:11] So, when the Fed lends money to the government, money has to be printed, Not to mention that we've seen just general concerns by people in America and outside of America about what's going to happen to the dollar, which has

[06:25] lending money to the United States government by buying these Treasuries inflation. There are concerns about the dollar. There's concerns about the future of the dollar, and all of those things have contributed to the old

[06:39] were before, which is why the government still needs lenders. In fact, it needs more lenders today than before, and this is where cryptocurrency companies come reason, which is the government is worried about the dollar losing its

[06:53] status as the world's reserve currency. For about 100 years now, the United reserve currency. It was not always the world's reserve currency, And as the world's reserve currency, the dollar has a lot of value. It has a lot

[07:07] of power. That allows the government to continue spending money that it doesn't have. That allows the country to be richer than it would be otherwise of this dollar. We can't print more wealth, but we can print more dollars,

[07:20] but inflation gets to stay calm-er because people still have trust in the dollar. Not just in the United States, but around the world. But if people loses value, inflation becomes a bigger problem. And

[07:33] this is why the United States government needs buyers of the dollar because if there are buyers of the dollar, that means the dollar continues to have buy the dollar, nobody wants to lend

[07:46] to hold on to these dollars, well now the dollar becomes worthless. That's a big problem. So, the government needs interest in the dollar. And so, what did the government do? It has required by law

[07:59] cryptocurrency companies, now back stablecoins one-to-one with the United States dollar, which means we now have a whole new cohort of lenders to the United States government, which helps show security around the world that

[08:13] there's still buyers for the United States debt, and these buyers for this United States debt are accelerating because these cryptocurrency companies are now buying more and more of this United States dollar, which shows that

[08:26] States government. is where it really helps to understand how cryptocurrency companies like Tether actually make money, because what I showed you a minute ago is that one USDT, the stablecoin, equals one USD.

[08:42] Now, the question is, when you go out and you buy this USDT, how does Tether actually make any money? And the way that it works now is if you go out and you buy $100 worth of the stablecoin, this USDT, Tether must go

[08:57] out and make sure they own $100 of this United >> [snorts] >> Now, when Tether goes out and they lend this $100 to the United States government, the US

[09:10] to the United States government, the US government now has to pay interest back to Tether because it's a loan. When you lend the money to your broke cousin interest. When you lend your money to the United States government, this is

[09:23] called a Treasury bond, the government has to pay you interest. the government has to pay you interest. So, you took $100 and you bought 100 USDT. Tether then has to buy 100 USD

[09:37] of loans from the United States government. That 100 USD of loans now generates interest to Tether. As of today, it's paying out somewhere between today, it's paying out somewhere between 4% to 5% in interest depending on how

[09:51] long these loans are out from maturity. But that means now for every dollar that Tether has, they're generating interest just by sitting on that dollar. So when people buy more USDT, Tether holds more of United States debt.

[10:07] just because you're using their currency. And so they take that money, government pays Tether interest. To put it in perspective, there are about 100 people that work at Tether that made over $10 billion in 2025,

[10:24] making them one of the most profitable companies by employee in the history of time. Now, while all of this sounds good so far, it also comes with risks. The fastest growing owner of this United States debt is no longer the Fed or

[10:37] American institutions or foreign countries. It is now a private company companies. Which means if there was some sort of crash in stablecoins, people lost their trust in stablecoins, they

[10:52] started selling out of the USDT, then Tether would have to sell out of the United States debt, which means now the United States bond market would crash, which could rattle not just the United States markets, but global markets

[11:05] because the entire world is watching the United States bond market. And that all hinges on people's trust in stablecoins. Risk number two is Tether, the company itself. Remember, Tether makes money off of these interest rates. Well, do you

[11:20] know who decides these interest rates? The Federal Reserve Bank. And right now rates have been higher for longer. Higher interest rates are not good for your mortgage, but they're great for Tether because that means Tether gets to

[11:34] make more money on every dollar that you buy with USDT, and that means every Treasury, and that means more money for Tether. So, Tether loves higher interest money. And right now, we don't know what's going to happen in the rest of

[11:50] continuing to raise interest rates in 2026, which would be great for Tether. But, what happens if the Fed were to cut interest rates? Because if the Fed of a sudden this income stream for Tether goes away.

[12:05] Tether has to change their business, or they start to struggle as a company, that could pose risk now for the entire United States bond market, not just the Tether company, but the entire United States bond market, which it can impact

[12:18] which can impact the entire global economy. Risk number three, which really isn't that big of a risk, is Bitcoin crashing. Now, I know a lot of people to fall even harder, what is that going to do with stable coins? And actually,

[12:32] what we've seen historically up until now is that Bitcoin crashing is actually good for stable coins. And the reason why is because when Bitcoin crashes, cryptocurrency market, safety means stable coins. So, when people are

[12:45] stable coins. So, that's actually good we have seen over the last 10 years. This is why you want to pay attention because our money, as we know it, is changing. Before the United States

[12:57] dollar used to be backed by gold. That changed in 1971 when then President Richard Nixon took the dollar off the gold standard. After that, the United States dollar was backed by oil. This is called the petrodollar after the United

[13:10] States built an agreement with Saudi Arabia back in 1974 to have oil sales around the world sold in the United States dollar. That brought value to the United States dollar, but then after the pandemic,

[13:23] that started to break because then we started to see countries selling oil in the Chinese yuan, not the United States dollar. Now here we are in 2026 and it's changing again because now the United States dollar wants to be backed by

[13:37] cryptocurrency in this way as a way to continue to drive trust, faith, and value in the United States dollar. Which means money is going to move. Now you can't go out and invest in the Tether company because it is privately

[13:52] company. There are other companies like Circle which are publicly traded, but going to change money, which is why again it is so important for you to be these changes. Again, I have a free investing masterclass for you down in

[14:05] up for that just yet. But what we talked about in this video is that President Trump has passed something called the Genius Act, which is now requiring stablecoin companies to back their stablecoin with the United States

[14:20] right now the United States government has about 40 trillion dollars worth of national debt and the old lenders of foreign countries or American institutions in the Federal Reserve Bank aren't lending the way that they were to

[14:33] the United States government, but the government continues needing more debt. And if we continue needing more debt, we need more lenders to lend money to the United States government because if the government cannot get that money,

[14:46] that could cause a huge meltdown in our economic system and the global economic system. And this is where the solution under the Trump administration is to have stablecoins now go out and buy this

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[16:05] credit cards as well. So, if you know how to manage your money and you're can see some of my top credit cards right now in the free article that I And so, what we've seen happen is that over the last 10 years, Tether went from

[16:19] a $10 million company to a $185 billion company, which is a growth of about a million percent in valuation. And now, Tether is one of the 20 largest owners of United States debt in the world. And it could be one of the 10 largest owners

[16:32] of United States debt globally by the end of 2026. And they're just one of the >> [snorts] >> And it is planned to accelerate not just in 2026, but in the coming years as well. To put that in perspective, Nvidia

[16:45] well. To put that in perspective, Nvidia grew by 6,700% and SpaceX by 17,000% over the last 10 years. So, we're talking about many, many, many multiples more for Tether. Well, this obviously has some risks.

[17:00] people lose faith in stablecoins or in Tether. That could force people to sell, United States Treasuries, which cause a crash in the United States bond market, which can hurt the entire global market system. Risk number two is what happens

[17:15] President Trump wants lower interest rates. A lot of people want lower mortgage rates. If interest rates go down, Tether's income goes down. And how especially because now they are a private company that is controlling the

[17:29] United States debt? And risk number three that people have is what happens if Bitcoin crashes even further? Well, historically what we've seen is that stable coins because when Bitcoin crashes, people want a more stable

[17:43] investment and so they go to something safer like stable coins. This is why investor. If you got value out of this video, the best thank you is a referral. video with a friend, family member, colleague, or fellow investor. That way

[17:55] financial education. Thank you. President Trump's new Fed chair recently finished his first meeting and his announcements caused money to change overnight. Gold prices crashed to under $4,000 for the first time in months.

[18:10] Silver prices crashed even harder than that and Bitcoin prices fell off of a pointing their fingers at Kevin Warsh's new economic plan as the

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