US Congress just legalized the largest wealth transfer in financial history.
Nobody noticed.
Section 11 of the GENIUS Act prohibits stablecoins from paying yield to holders.
Tether holds $135 billion in Treasuries earning 4.5%.
That's $6 billion annually.
Passed to you: $0.
Tether keeps everything.
Legally mandated.
By Congress.
It gets worse.
January 1, 2026: China activated interest-bearing digital yuan.
American digital dollar: 0% yield (banned) Chinese digital yuan: 0.35% yield (enabled)
For every merchant in Brazil, Nigeria, Indonesia choosing settlement rails:
America charges you to hold dollars. China pays you to hold yuan.
This is what "dollar dominance" looks like now.
The smart money already sees it.
BlackRock's BUIDL: $2.8 billion AUM, pays 4.9% Franklin's BENJI: $849 million AUM, pays 4.9%
Same Treasury backing. Different legal wrapper. Full yield to holders.
Institutional capital is migrating from zero-yield stablecoins to yield-bearing tokenized Treasuries.
The GENIUS Act accidentally created the product that kills its own creation.
BIS Working Paper 1270 quantified the asymmetry:
$3.5B inflow: yields drop 2.5 bps $3.5B outflow: yields spike 8 bps
Ratio is 1:3.
Stablecoin issuers have no Fed backstop. No discount window. No lender of last resort.
One confidence crisis forces a $135 billion Treasury fire sale with no rescue mechanism.
Congress built a bomb and called it regulation.
The GENIUS Act didn't secure dollar hegemony.
It created two financial universes:
One extracts yield from holders. One distributes yield to holders.
America chose extraction. China chose distribution.
Bookmark this.
Full analysis with falsification triggers:
https://x.com/shanaka86/status/2011664426601234597
https://substack.com/inbox/post/184625687