A growing chorus of analysts and policymakers are worrying that America may be preparing a drastic financial reset, using its new stablecoin law to quietly devalue obligations and offload trillions in national debt onto global investors.
The GENIUS Act, signed by President Trump in July, established regulatory frameworks for payment stablecoins—digital tokens pegged to the dollar and backed by reserves including cash and US Treasuries. Treasury Secretary Scott Bessent promoted the measure as a ”digital payments revolution” to modernise finance and entrench dollar dominance globally
Critics, including Russian presidential adviser Anton Kobyakov, argue the law could serve as a Trojan horse.
Once foreign central banks, sovereign funds and investors hold vast quantities of these regulated stablecoins, Washington could theoretically remove the one-to-one dollar peg or devalue tokens, slashing global reserve values by up to 95%.
Such action would reduce America’s $37.4 trillion debt burden without explicit default, but at catastrophic cost to creditors.
US officials dismiss such warnings as alarmist, yet America has previously used financial resets to ease debt burdens at others’ expense:
- in 1934, Roosevelt revalued gold from $20.67 to $35 per ounce, devaluing the dollar by 41% and cutting real wealth of dollar holders;
- in 1971, Nixon ended dollar-gold convertibility, triggering inflation that halved global reserve values and launched the modern fiat currency era.
It deserves to be noted that whilst these historical precedents involved sovereign monetary policy decisions affecting government obligations. The stablecoin scenario would require the U.S. government to essentially orchestrate fraud against token holders.
Impact Ranking (Most to Least Exposed), if the US devalues itself out of its $37.4 trillion national debt:
- US Domestic Holders (80% of debt): Banks, pension funds, insurers, households, Federal Reserve
- Japan: $1.0T in Treasuries
- Eurozone: $500–700B
- China: $800B in Treasuries
- Global non-US Financial Institutions: European, Japanese, Canadian banks plus global insurers/pension funds holding trillions collectively
- Brazil: $230B reserves, 80% dollar-linked
- India: $230B
- South Africa: $60B
- UK & Canada: Imprecise figures, but deep exposure via banks and clearing
- Russia: Already de-dollarised, holding gold and yuan reserves. Minimal direct losses; potential geopolitical gains
The fallout from a US devaluation would extend far beyond financial markets, affecting both BRICS and G7 nations. Following the Great Depression and 1920s-30s hyperinflations, America and Europe witnessed surges in authoritarian, fascist and populist movements.
Could a radical US devaluation trigger a similar political upheaval, fueled by financial ruin, elite mistrust and geopolitical blame, and herald a New World Order?
References and related
- Asia Times: US plotting dollar ‘rug pull’ with crypto, gold and lies
- Yahoo!Finance: Putin Advisor Accuses US of Using Crypto, Gold to Escape Massive Debt
- The Economic Times: Putin’s advisor warns of US conspiracy to wipe out $35 trillion debt using crypto and gold market
- Reuters: Amundi warns US stablecoin policy could destabilise global payments system
- Latham & Watkins: The GENIUS Act of 2025: Stablecoin Legislation Adopted in the US
- NewsVoice: bitcoin