Banks Cry Over Stablecoins 😢 | CryptOMG 133

Who Will Weep for the Banks?

The banks are crying, and for once, it’s not because of a financial crisis — it’s because of stablecoins. A coalition of banking and regulatory groups is lobbying against the Genius Act, which gives legal clarity to stablecoins, because they know it threatens their core business.

In this episode, we dive into:

Why banks fear stablecoins could upend their outdated settlement systems

How the Genius Act forces full 1:1 reserves and risk-free backing (no FDIC insurance needed)

The truth about rehypothecation and why banks depend on it to generate profits

Why stablecoins are simply digitized dollars, built for a global, 24/7 economy

How programmable money and DeFi could replace savings accounts with automated, risk-adjusted returns

Operation Chokepoint 2.0 and the growing pushback from Wall Street

Why “don’t trust, verify” code beats the old system of trust-based shadow banking

Stablecoins don’t just compete with banks — they expose the weaknesses in a model that has failed consumers time and again. No surprise the bankers are shaking in their boots.

This isn’t just about crypto hype. It’s about a financial system that works better for everyone, built on transparency, accountability, and open code instead of risk and bailouts.

Chapters
00:00 Intro
01:45 The Banker Coalition’s Letter
04:10 Why Stablecoins Scare Wall Street
07:00 FDIC Insurance vs Full-Reserve Rules
10:20 Rehypothecation Explained
14:00 Stablecoins as Digitized Dollars
17:30 Shadow Banking & Hidden Risk
20:00 Smart Contracts vs Old Trust Systems
23:45 Banks in Panic Mode
27:00 Closing Thoughts

#Stablecoins #CryptoNews #BankingCrisis #DeFi #GeniusAct #Bitcoin #CryptoMyGod #cryptocurrency #digitalassets #crypto #digitalcurrency #ethereum #blockchain