Charles’ Note: As I explain below, the banking sector’s about to be upended. But that’s just one industry that’s a victim – beneficiary? – of the Age of Chaos we’re living in. 

There are at least three other markets that are undergoing an unprecedented shift. This began with President Trump’s “Liberation Day” tariffs, but now things are about to kick into high gear in what legendary investor and Freeport Society cofounder Louis Navellier calls Liberation Day 2.0.

According to his research, it could unleash up to $10 trillion in new stimulus, create millions of high-paying jobs, and spark the next phase of a generational bull market. 

But only if you know where to look.

That’s why Louis’ hosting his Liberation Day Summit tomorrow at 1 p.m. ET. He will lay out a detailed plan for how he’s preparing his readers to profit from this unprecedented shift. He will even give away the name and ticker of one A-rated stock he believes could hand investors a $5,000 to $15,000 payday in the coming months.

It’s completely free to watch. Just click here to reserve your spot.

Louis is a living legend. He created a proprietary system to help uncover fortune-making investments. And this system led The Hulbert Financial Digest to rate his model portfolio as the best in the industry. It’s helped him uncover 175 different stocks that soared 1,000% or more.

Last year alone, on a $7,500 investment, his readers could have walked away with a $2,093 gain on Novo Nordisk, a $5,500 gain on Axcelis Technologies, a $7,647 gain on Powell Industries, and a $14,000 gain on YPF. There’s even a whopping $45,360 gain on Vista Energy.

Louis’ been wringing profits from the stock market through volatile times and during snooze fests. As this Age of Chaos continues unabated, his “Liberation Day 2.0” recommendations could be life changing. 

Don’t miss tomorrow’s event. Sign up here.

Now, let’s dig into what’s going to upend the banking sector…

The Biggest Banking Shakeup in Decades Is Weeks Away

The banking industry is about to be upended.

Last week, the GENIUS Act passed a procedural hurdle in the Senate. 

No, it’s not a plan to replace the Fed with ChatGPT (more’s the pity).

GENIUS is short for Guiding and Establishing National Innovation for U.S. Stablecoins.

It’s a bipartisan bill introduced in the Senate earlier this year. 

Its aim is to establish a federal regulatory framework for stablecoins – digital assets pegged to the U.S. dollar that are designed for use in payments and settlements. 

This legislation seeks to bring clarity and oversight to a rapidly growing segment of the cryptocurrency market that has historically operated with minimal regulation.

It’s expected to pass a full floor vote any day now. This would send the bill to the House, where it should pass without much resistance. 

President Trump has embraced crypto. 

He even promotes his own coins – most notably the $TRUMP meme coin. 

So, we expected he’ll sign it as soon as it hits his desk. 

That means the GENIUS Act may be law within weeks. And it will trigger an explosion of interest in stablecoins… and the biggest shakeup to the banking industry in decades.  

As we’ll explore in today’s Navigator, the days of costly, cumbersome bank wire transfers are numbered. And a newer, cheaper, sleeker way of sending and receiving funds is coming.

Just don’t confuse stablecoins for “anti-dollar” cryptos such as Bitcoin. For all their potential usefulness, stablecoins have an inherent weakness that won’t go away.

Crypto-Fiat Hybrid

A stablecoin is a type of cryptocurrency designed to keep a steady value relative to a fiat currency such as the U.S. dollar.

To keep a $1 value, the issuer holds a reserve of dollars and dollar-based assets — such as U.S. Treasury bills — in a secure, regulated account. 

These reserves act as a backing mechanism. They ensure that each stablecoin can be redeemed for the currency it’s tracking

This is what sets stablecoins apart from cryptocurrencies such as Bitcoin or Ethereum, which fluctuate wildly in price. 

Stablecoins are built for stability and utility, not speculation.

Think of a stablecoin as a hybrid between a cryptocurrency and a fiat currency money market fund — digital, fast-moving, but backed by a fiat currency.

Fantastic. 

But if a stablecoin is designed to track dollars… why not just own dollars?

The biggest benefits of using a stablecoin over its legacy financial system counterpart is the cost and speed of transactions. 

Cumbersome and Stupidly Expensive

As you may have experienced, banks are stupidly expensive, cumbersome, and slow when it comes to wiring money – particularly when it involves wiring funds to another country. 

I’m infuriated at the costs every time I need to move money between the U.S. and Peru (where I’m based with my wife and family). And my mood isn’t helped by the fact that the funds can take days to arrive. 

But I deal with it because my only other option is to show up with the bundles of cash in my suitcase. And customs officers tend to be suspicious of gringos flying in or out of South America with cases full of money. 

A stablecoin allows you to move funds around quickly and cheaply while cutting some of your exposure to the fragile banking system.

And it is fragile.

Let’s face it… banks don’t have the best reputations for risk management. They fail. Often. And when they do, if you have balances over the FDIC limit, you’re screwed. 

Beyond that, a lot of countries have exchange controls or place limits on their citizens’ ability to hold dollars, euros, or hard currencies such as gold. Stablecoins offer a way to skirt these oppressive measures.

Wild West

The biggest two stablecoins by market value are Tether (USDT) by USD Coin (USDC). As I write, they have market caps of $152 billion and $61 billion and represent about 90% of all stablecoin value in circulation.

These stablecoins regularly process more daily volume than Visa’s global payment network. In fact, Tether alone has settled more $10 trillion in transactions — more than PayPal and Mastercard combined.

Not to be left out, Trump has his own stablecoin, World Liberty Financial USD (USD1). It made headlines last month when the United Arab Emirates’ government-owned investing fund, MGX Fund Management, used it to make a $2 billion investment in crypto exchange Binance. 

So, real money is moving through these digital assets… lots of it.

But up until now, stablecoins haven’t been able to make much of a dent in the trillions of dollars of traditional wires made every day. 

The biggest reason for the lack of acceptance is lack of regulation. Stablecoins exist in the Wild West of barely regulated cryptocurrency. 

That’s what the GENIUS Act plans to change. It creates the guidelines for a regulated stablecoin market. Among other things…

• It specifies who is allowed to issue a stablecoin, such as banks and specific non bank entities that the Office of the Comptroller of the Currency (OCC) has approved. 
• It states that stablecoins must be backed one-to-one by U.S. dollars, short-term Treasurys, or similarly liquid assets. 
• It lays out audit and financial reporting requirements. 
• It explains the rights of coin holders in the event of bankruptcy.

So, once the GENIUS Act is in place, expect even more money to flow through these digital assets. 

But before you get too excited about stablecoins, it’s worth keeping in mind their fatal flaw.

Fatal Flaw

Stablecoins have the potential to replace clunky bank wire transfers.

They promise to give folks the ability to hold their savings outside of an untrustworthy banking system. 

At the very least, they create competition that, over time, should lower costs and improve the overall experience.

But they have a fatal flaw: They’re pegged to the friggin’ dollar!

Part of our mission at the Freeport Society is to make sure you and your fellow readers are protected against dollar risk. 

We’ve watched Congress and the Fed shred the value of the dollar in real time. It’s lost a quarter of its value since 2020 to inflation.   

This brings us to the core difference between Bitcoin and U.S. dollar stablecoins.

Bitcoin is a fantastic store of value. Its supply is capped at 21 million, and it’s designed to be scarce. 

As I like to say, it’s an “anti-dollar.” Everything the dollar is, Bitcoin is not. 

That’s why it’s up 162% in the model portfolio at our flagship Freeport Investor advisory since I recommended it when we launched in December 2023.

But Bitcoin is also a terrible medium of exchange — at least for now.

First, Bitcoin’s blockchain is designed to be slow and secure, not fast and scalable. It can handle only about seven transactions per second. Compare that to Visa, which can process tens of thousands per second. 

Second, transaction fees on Bitcoin can fluctuate wildly. During times of high network congestion, sending a single Bitcoin payment might cost several dollars, or even more.

So, forget about using it for everyday purchases like coffee or groceries.

Third, Bitcoin’s price swing dramatically — often by 5% to 10% in a day, and much more over weeks or months. 

That volatility makes it hard for both consumers and merchants to treat it as a stable form of payment. If you’re a shop owner accepting Bitcoin, the value of what you earn might drop sharply before you can convert it into fiat currency.

Imagine running a business where your cash register could lose 20% of its value overnight. Not ideal.

I want to own Bitcoin. I don’t want to use it to buy a Big Mac or a latte. 

Bitcoin is for building and storing wealth. Stablecoins are for transacting and competing with checking accounts. 

Wave of Innovation

If you rarely wire money, the rise of stablecoins won’t affect you much – if at all. The immediate benefits will go to those who spend a fortune on bank wires. 

The bigger story is that we’re likely on the verge of a funding boom for stablecoins, as every major bank scrambles to launch its own.

JPMorgan Chase is already ahead of the curve with its JPM Coin. But it’s strictly used in institutional transactions. Retail customers like you and me can’t touch it — yet.

That flood of money will drive a wave of innovation that sees cryptocurrencies go more mainstream. You may see your local sandwich shop offering you a discount if you pay with a stablecoin wallet as opposed to a Visa or Mastercard that will ding them with merchant fees. 

You may see parallel financial systems emerge alongside traditional banks. 

And I can guarantee there will be crazy new innovations that you and I can’t even imagine yet. 

But before you dump your life savings into one of these things, remember their primary weakness. 

If they are designed to track the dollar, then they are just as risky as the dollar. So, don’t sell your Bitcoin or gold just yet. 

To life, liberty and the pursuit of wealth,

Charles Sizemore

Chief Investment Strategist, The Freeport Society

P.S. I want to hear from you. Once stablecoins become a reality, would you use them? What would your biggest fear be about using them? Let me know at [email protected]. And if you have any questions about stablecoins or anything else, send those along while you’re at it.