Tues. AM-PM Seeds of Wisdom News Update(s) 1-13-26

(Note: If you’re looking for more news regarding cryptocurrency, please visit our website Bitcoin Commando. All crypto news will be posted there. ~ Dinar Chronicles)

Seeds of Wisdom

Senate CLARITY Act Update: Stablecoin Rewards Get a Green Light

Washington draws a sharp line between payments incentives and bank-style yield

Overview

A revised draft of the U.S. Senate’s CLARITY Act would allow activity-based stablecoin rewards tied to payments, wallets, staking, and network participation — while explicitly banning interest or yield paid solely for holding stablecoins. The update aims to give crypto firms clearer rules without treating stablecoins as securities or bank deposits, a long-running point of contention between fintech, crypto firms, and traditional banking groups.

Key Developments

Activity-Based Rewards Explicitly Permitted

• The amended Digital Asset Market Clarity Act makes clear that rewards linked to actual use of stablecoins are allowed. These include incentives tied to payments, transfers, remittances, and settlements, as well as benefits connected to wallets, accounts, platforms, or blockchain networks.
  
• Crucially, the draft states that offering such rewards does not transform a stablecoin into a security or bank-like product, providing long-sought regulatory clarity for issuers and service providers.

Loyalty, Promotions, and Crypto-Native Incentives Covered

• Beyond everyday payments, the exemption extends to loyalty programs, promotional incentives, subscriptions, and rebates involving stablecoins.
  
• The draft also embraces crypto-native activity, permitting rewards associated with providing liquidity or collateral, governance participation, validation, staking, and broader ecosystem engagement — signaling congressional recognition that blockchain networks operate differently from traditional finance.

Clear Prohibition on “Passive” Stablecoin Yield

While activity-based rewards are allowed, the bill draws a firm boundary: digital asset service providers may not pay interest or yield solely for holding a payment stablecoin, regardless of whether compensation is delivered in cash, tokens, or other consideration.
This distinction directly addresses concerns from banking groups that yield-bearing stablecoins resemble deposit-taking without oversight.

Political and Industry Tensions Continue

Senate Banking Chair Tim Scott framed the revised draft as providing “clear rules of the road” for families and small businesses, emphasizing consumer protection and certainty.
However, community banks remain alarmed, arguing that reward programs could pull deposits away from local lenders, weakening credit access for small businesses and households. Crypto advocacy groups counter that stablecoins do not fund loans and that excessive restrictions would curb innovation and consumer choice.

Why It Matters

The CLARITY Act draft represents a regulatory compromise: allowing innovation in payments and blockchain ecosystems while preventing stablecoins from morphing into shadow banking products. By separating usage incentives from passive yield, lawmakers are attempting to modernize financial rules without destabilizing the existing banking system.

Why It Matters to Foreign Currency Holders

For foreign currency holders watching broader financial system reform and global reset narratives, this legislation matters because stablecoins increasingly function as cross-border payment rails. Clear U.S. rules around rewards and usage could accelerate adoption in remittances and trade settlement, indirectly influencing currency flows, liquidity, and valuation dynamics outside the dollar system.

Implications for the Global Reset

Under Global Reset Pillar One, regulated stablecoin usage strengthens alternative payment infrastructure without collapsing banks. Under Pillar Two, political pushback from community banks highlights resistance to rapid change. Together, the CLARITY Act draft points to incremental integration of crypto into the financial system, not disruption overnight.

This isn’t a green light for crypto yield — it’s Washington defining what counts as real financial activity.

Seeds of Wisdom Team  
Newshounds News™ Exclusive

Sources

• Cointelegraph — New Senate CLARITY Act draft allows activity-based stablecoin rewards
• Reuters — U.S. lawmakers seek clearer rules for stablecoins amid bank concerns

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BRICS De-Dollarization in 2026: A Turning Point for Global Dollar Use

Local currencies rise, payment rails multiply, and the dollar’s role quietly adjusts

Overview

BRICS de-dollarization efforts heading into 2026 are accelerating through local currency settlements and alternative payment systems, not through an abrupt rejection of the U.S. dollar. While Russia and China now settle roughly 90% of their trade in rubles and yuan, other members — notably India — are signaling restraint, emphasizing the dollar’s continued role in global stability. The result is a measured, infrastructure-driven shift rather than a dramatic currency overthrow.

Key Developments

Local Currency Trading Gains Ground

• Bilateral trade among BRICS members is increasingly conducted in national currencies, reducing transaction costs and exposure to sanctions. Russian President V************n has emphasized that this shift is pragmatic rather than ideological, noting that alternatives are pursued only when access to the dollar system is restricted.
  
• The expansion of ruble, yuan, and other friendly currencies in settlements reflects a functional diversification, not a wholesale abandonment of the greenback.

Alternative Infrastructure Takes Shape

• Instead of launching a single BRICS currency, the bloc is prioritizing interoperable payment systems. Platforms such as BRICS Pay aim to link domestic networks like Russia’s SPFS, China’s CIPS, and India’s UPI.
  
• Meanwhile, mBridge enables near-instant cross-border settlements using central bank digital currencies, signaling how future trade may bypass traditional correspondent banking rails.

Political Pressure Influences the Pace

• Former U.S. President Donald Trump has warned of potential 100% tariffs against countries aggressively pursuing de-dollarization, framing the issue as a strategic and political threat.
  
• Brazilian President Lula da Silva responded by criticizing the use of tariffs as economic coercion, underscoring how geopolitical pressure is shaping BRICS strategy as much as economics.

India Signals Caution, Not Confrontation

• India has distanced itself from rhetoric about replacing the dollar. External Affairs Minister S. Jaishankar has stressed that the dollar remains a cornerstone of global economic stability, and that BRICS lacks a unified stance on dethroning it.
  
• This cautious approach highlights that BRICS de-dollarization is uneven and pragmatic, with each member prioritizing its own financial stability.

Why It Matters

• The 2026 BRICS de-dollarization push is less about collapsing dollar dominance and more about building parallel systems. As trade increasingly flows through local currencies and new payment rails, the dollar’s exclusive centrality erodes — even if its reserve status remains intact.
  
• This gradual shift could reshape global liquidity flows, reduce sanctions leverage, and introduce a more multipolar financial order.

Why It Matters to Foreign Currency Holders

• For foreign currency holders watching potential revaluations and a broader global reset, this evolution is critical. Expanded local currency trade and alternative settlement systems increase demand for non-dollar currencies, especially those tied to commodities and regional trade hubs.
  
• Rather than a sudden dollar collapse, the opportunity lies in incremental currency realignments as global finance diversifies.

Implications for the Global Reset

Under Global Reset Pillar One, BRICS infrastructure-building weakens single-system dependence. Under Pillar Two, political resistance and dollar stability slow any abrupt transition. Together, they point to a controlled financial rebalancing, not chaos.

This is not a dollar crash — it’s a quiet rewiring of how the world settles trade.

Seeds of Wisdom Team  
Newshounds News™ Exclusive

Sources

• BRICS De-Dollarization in 2026: Turning Point for Global Dollar Use
• Reuters — BRICS nations push local currency trade to cut dollar reliance

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Source: Dinar Recaps

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Fed Independence Shock: Powell Probe Sends Tremors Through Global Finance

Dollar confidence tested as political pressure meets monetary authority

Overview

• A criminal investigation involving Federal Reserve Chair Jerome Powell has triggered immediate market unease.
• Investors are reacting to perceived threats against U.S. central bank independence, a cornerstone of global monetary trust.
• The development is rippling through currencies, metals, and risk sentiment worldwide.

Key Developments

• U.S. prosecutors are examining Powell’s congressional testimony related to a Federal Reserve building renovation.
• Former central bank officials and economists warn that politicizing the Fed could undermine policy credibility.
• Markets responded quickly, reflecting heightened sensitivity to institutional stability.

Why It Matters

• The Fed’s independence underpins global dollar confidence and international capital flows.
• Any erosion of that independence increases systemic risk and volatility across asset classes.

Why It Matters to Foreign Currency Holders

Instability at the Fed can accelerate diversification away from the dollar, boosting interest in alternative currencies and stores of value.
For those positioned for a future currency reset, this represents a structural pressure point rather than a short-term headline.

Implications for the Global Reset

• This event strikes at Pillar One: trust in monetary institutions.
• Even the perception of interference can catalyze long-term shifts in reserve strategy by governments and central banks.

When confidence in the referee falters, the entire financial game changes.

Seeds of Wisdom Team
Newshounds News

Sources

• Reuters — Dollar reels on criminal probe into Fed Chair Powell
• Financial Times — Gold hits record high as Fed independence worries mount

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Dollar Weakens as Markets Question U.S. Monetary Authority

Currency volatility resurfaces amid political and policy uncertainty

Overview

• The U.S. dollar softened sharply following news tied to the Powell investigation and broader policy uncertainty.
• Currency markets are signaling reduced tolerance for political risk at the heart of U.S. monetary governance.

Key Developments

• The dollar fell against major peers as traders reassessed policy credibility and future rate decisions.
• Analysts note rising demand for non-dollar hedges amid uncertainty over institutional independence.
• Volatility metrics ticked higher, reflecting fragile confidence.

Why It Matters

• The dollar remains the world’s primary reserve and settlement currency.
• Even temporary weakness can reprice global trade, debt servicing, and capital flows.

Why It Matters to Foreign Currency Holders

• Periods of dollar stress historically precede currency realignments and revaluations elsewhere.
• Holders of foreign currencies often benefit when markets anticipate reduced dollar dominance.

Implications for the Global Reset

• This aligns with Pillar Two: gradual erosion of single-currency reliance.
• Not a collapse — but a measured rebalancing signal watched closely by global investors.

Dollar dominance doesn’t vanish overnight — it frays at the edges first.

Seeds of Wisdom Team
Newshounds News

Sources

• Reuters — Dollar weakens as Fed credibility concerns grow
• Wall Street Journal — Investors reassess dollar outlook amid Fed scrutiny

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Gold Hits Record High as Investors Flee Fiat Risk

Safe-haven demand surges on dollar and policy fears

Overview

• Gold prices surged to record highs as investors sought safety amid U.S. monetary uncertainty.
• The move reflects deepening concern over fiat currency stability, not just short-term trading flows.

Key Developments

• Gold rallied sharply following dollar weakness and Fed independence headlines.
• Institutional demand increased as markets priced in longer-term confidence risk.
• Other safe havens, including silver, also attracted inflows.

Why It Matters

• Gold remains a core reserve asset for central banks globally.
• Rising prices often signal structural stress within the fiat system, not just inflation hedging.

Why It Matters to Foreign Currency Holders

• Strength in gold historically correlates with currency system transitions.
• Precious metals often lead before currency repricing or monetary restructuring occurs.

Implications for the Global Reset

• Gold’s surge reinforces Pillar One: asset-backed confidence over paper promises.
• Central banks may accelerate reserve diversification strategies, reshaping the global monetary map.

Gold doesn’t chase headlines — it responds to trust breaking down.

Seeds of Wisdom Team
Newshounds News

Sources

• Financial Times — Gold hits record high on Fed independence fears
• Reuters — Safe-haven demand drives precious metals higher

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Source: Dinar Recaps

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Trump’s $2,000 Tariff Checks in 2026: Status and Outlook

Tariff revenue promises collide with legal and practical reality

Overview

• Former President Donald Trump has renewed talk of sending $2,000 “tariff dividend” checks to Americans funded by tariff revenue.
  
• The timing is uncertain: administration statements now target “toward the end of 2026.”
  
• Implementation hinges on legislation from Congress and the outcome of a critical Supreme Court decision on the legality of the tariffs themselves.

Latest Signals

• Trump appeared to momentarily forget his own promise in a recent interview, later reaffirming plans for checks by end of 2026.
• The White House has not released a detailed, concrete roadmap for the program.
  
• Treasury Secretary Scott Bessent stated that tariff rebates would require new legislation, adding uncertainty to e*******n.

Constraints and Challenges

• The tariff revenue Trump cites has been widely questioned; available funds are far short of early estimates required to support $2,000 payments at scale.
  
• Congressional approval is essential — executive action alone won’t deliver the checks.

Why It Matters

If implemented, these checks could stimulate consumer spending and redistribute tariff-generated revenue — a politically powerful but economically debated policy.

Failure to secure legal footing for the underlying tariffs directly jeopardizes the revenue base imagined for these checks.

Tariff dreams meet the hard wall of legal and legislative reality.

Seeds of Wisdom Team
Newshounds News

Sources

• People — Trump appears unsure about $2,000 tariff checks but suggests late-2026 payout
• Forbes — Treasury says $2,000 tariff checks need congressional approval

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Supreme Court and Tariffs: Ruling Pending, Stakes Very High

Justices weigh executive power, congressional authority, and economic fallout

Overview

• The U.S. Supreme Court is expected soon to rule on whether broad tariffs imposed by Trump under the International Emergency Economic Powers Act (IEEPA) were lawful.
  
• Lower courts previously held that the tariffs exceeded presidential authority and were i*****l.

Trump’s Response

• Trump warned that a ruling against tariff legality would leave the U.S. “s*****d,” potentially requiring hundreds of billions (or even trillions) in refunds to companies and trading partners.
  
• The president described the fallout as a “complete mess.”

Treasury’s Comment

Treasury Secretary Scott Bessent says that if the Supreme Court strikes down the tariffs, the Treasury has sufficient funds to issue refunds, though the process could take weeks to a year.

Judicial Timing

The Supreme Court has not yet released a decision on the tariffs, leaving markets and policymakers in suspense.

Why It Matters

• A ruling against the tariffs would be a significant judicial check on executive economic power, reaffirming Congressional authority over trade policy.
  
• Substantial refunds could reshape Treasury finances and alter fiscal forecasts.
  
• The outcome directly affects the viability of the $2,000 tariff check idea since those payments are premised on tariff revenue.

When the judiciary weighs in, both trade policy and fiscal strategy are on the line.

Seeds of Wisdom Team
Newshounds News

Sources

• Reuters — U.S. tariffs at risk of refunds exceeding $133.5 B if Supreme Court rules against legality
• AFP via Yahoo Finance — Trump says U.S. could be ‘s*****d’ if Supreme Court strikes tariffs down

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Economic and Policy Implications

Three potential pathways shaping the U.S. fiscal landscape

Scenario A: Tariffs Upheld

• Tariffs remain a significant revenue source.
• The T******************n could attempt to formalize $2,000 tariff checks via legislation.
• Confidence in executive economic policy might strengthen, though legal debate persists.

Scenario B: Tariffs Overturned

• The Supreme Court invalidates the tariff authority under IEEPA.
• The Treasury may refund hundreds of billions, dampening revenue projections.
• The $2,000 check plan loses much of its funding foundation, likely k*****g or reshaping it entirely.

Scenario C: Mixed Ruling

• The Court limits certain tariffs but allows others.
• Revenue streams may shrink but not vanish, prompting partial redistribution strategies or alternative tax incentives.

The legal fight over tariffs is not just about trade — it’s about who controls fiscal policy and how the government finances major programs.

Seeds of Wisdom Team
Newshounds News

Source

• The Independent — Tariff rebate checks hinge on Supreme Court ruling and revenue outlook
  https://www.the-independent.com/news/world/americas/us-politics/trump-tariff-rebate-checks-2026-b2886295.html

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Source: Dinar Recaps

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