Today, Silicon Valley is all aTwitter about the “crypto revolution” and the wonders of stablecoins. Yet a stealth threat is seeping into the fabric of America’s long-term financial health. We are told that it will bolster the dollar and modernize our systems, but I ask you, at what cost? Have we opened the door to the proverbial Trojan Horse into our financial Bastille? As such, this dangerous move would greatly aggravate our national security and economic sovereignty. Personally, I believe it’s time we pump the brakes on the hype train.

Dollar Dominance Under Attack?

Indeed, some have asserted that stablecoins — cryptocurrencies pegged to the U.S. dollar — will enhance the dollar’s standing globally. They argue this move would increase the dollar’s global legitimacy. That's like saying adding sugar to gasoline will improve your car's performance. It sounds good, but it's fundamentally flawed. Is it truly in the United States’ best interest to cede control of dollar-pegged assets to private actors? This concern runs particularly deep for those working beyond the purview of US regulators.

Think about it. These opaque entities, such as the largest stablecoin Tether, can create new “digital dollars” largely under the radar, if at all. Dangerously, from a regulatory standpoint, nothing stops them from being used to evade sanctions, support other illicit activities, or even manipulate currency markets. The answer, unfortunately, is very little. It’s not simply the $20 million at play here — it’s the influence behind that cash. Tightening and targeting the flow of capital matters now more than ever. As it stands, the status quo opens the door for foreign adversaries to create leverage against our economy.

Who Benefits From This Rush?

And fast forward to today, former President Trump—once a crypto skeptic—inching ever closer to full embrace of the industry, even attaching his brand to a stablecoin. And oh yes, while a convert is always welcome—spread the word, folks—we must still ask, “Cui bono? Who benefits? The crypto industry, obviously. They’ve spent hundreds of millions lobbying and buying campaign donations, and now they’re cashing their dividends. But what about the American people? Are their interests being served or are they being sold a bill of goods?

Perhaps the most egregious part of the pro-stablecoin argument is the discussion about how stablecoins could help economies with high inflation. Are we really going to entrust our financial stability to unregulated digital assets, hoping they'll magically solve global economic problems? To many, this smacks of the same broken promises of globalization. We were sold a false bill of goods that outsourcing jobs would help American workers, but it didn’t work. We know how that turned out.

  • The Promise: Bolster the dollar's global standing, aid economies facing inflation, and modernize the U.S. financial system.
  • The Reality: Potential for foreign entities to exploit loopholes, undermine sanctions, and destabilize the financial system.

We know that new technology can be such a thrilling prospect. We can never forget some of the most important lessons that history has taught us. Unfettered innovation, without proper safeguards, can have disastrous consequences.

Regulation: Too Little, Too Late?

Congress is finally working on legislation to regulate stablecoins, but will it be enough? The Senate’s GENIUS Act, in particular, is particularly alarming. Provisions that could allow foreign stablecoin issuers to operate in the U.S. with less oversight than domestic firms are downright alarming. In the process, we are creating a more favorable climate for foreign entities to take on American companies. To do otherwise would be to endanger our national security.

Some might say I'm being paranoid. That I'm afraid of progress. But I’m not afraid of progress, I’m afraid of reckless progress. And I fear that we endanger the nation by sacrificing our long-term economic security for short-term economic gain. We’ve been through this film—this disaster—before, and the ending is always the same.

This urgency in the stablecoin regulatory approach seems a bit panicky. Are we so quick to adopt this technology that we’re going to let ourselves get run over by it? In short, are we guilty of spreading our attention too thin by chasing the shiny, gleaming promise of innovation? Let’s not forget those hazards that can’t be seen right in front of us.

It's time to demand answers. Contact your representatives. Remind them to put national security and financial stability first—not the short-term buzz of crypto. Screening them reminds them to approach any stablecoin legislation with the utmost skepticism. The fate of America’s continued financial supremacy most certainly does. Don’t let them sell you that dream—it’ll end up a Silicon Valley nightmare.