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Economist Nouriel Roubini has sharply criticized the Trump administration’s second‑term embrace of digital assets, calling it a reckless experiment that undermines the U.S. financial system.
Legislative ‘Time Bombs’
Renowned economist Nouriel Roubini has issued a blistering critique of the Trump administration’s second-term pivot toward digital assets. In a scathing opinion piece, Roubini argues that the president’s aggressive promotion of the cryptocurrency industry is not a “new dawn” for innovation but a dangerous experiment rooted in a fundamental lack of understanding of the global monetary system.
In the piece, Roubini links bitcoin’s tumble of more than 40% from its October 2025 peak—occurring while traditional safe havens like gold soared by 60%—to a policy agenda dictated by “crypto-grifters” and a president who fails to grasp the basics of finance. The thrust of Roubini’s warning centers on two major pieces of legislation signed during Trump’s second term: the GENIUS Act and the upcoming Digital Asset Market Clarity (CLARITY) Act.
Roubini, who famously predicted the 2008 financial crisis, dismisses the GENIUS Act as the “Reckless Idiot Act,” arguing it sets the stage for a return to the unstable “free banking” era of the 19th century. By allowing stablecoins to operate without the oversight of narrow banks or access to a lender of last resort, Roubini warns the administration has created a “ticking time bomb.”
Read more: Sen. Cynthia Lummis Tells Banks to Stop Fighting Stablecoins and Start Using Them
“All it would take to incite a panic and trigger a bank run is for a few bad apples in pseudo-libertarian U.S. states to mis-invest their holdings or place their deposits in weak institutions like Silicon Valley Bank,” Roubini notes. “Thanks to Trump’s venality and cluelessness, and to the crypto industry’s corrupt influence peddling — it is a recipe for financial and economic instability.”
The most alarming aspect of Trump’s policy, according to Roubini, is the push to allow stablecoins to pay interest. He contends that this demonstrates a total failure to understand the “semi-public good” provided by fractional reserve banking.
By allowing the crypto industry to disintermediate traditional banks, the Trump administration is effectively pulling the rug out from under the foundations of the US economy. Roubini, also known as Dr. Doom, said the recent public alarm raised by JPMorgan Chase CEO Jamie Dimon was a necessary “wake-up call” that the president has ignored.
A Plea for Economic Literacy
Roubini argues that the past year has definitively proven that bitcoin is neither a currency nor a hedge against inflation or geopolitical risk.
“Every time gold has spiked in response to trade or geopolitical ructions over the past year, Bitcoin has fallen sharply,” Roubini observes. He maintains that 17 years after its inception, crypto still lacks a “killer app” beyond the stablecoin — which he describes as merely a digital version of old-fashioned fiat money that banks perfected decades ago.
The article concludes with a plea to the few remaining traditionalists in the administration, specifically Treasury Secretary Scott Bessent. Roubini expresses hope that the Treasury can “teach [Trump] how the banking system works” before personal interests and “ crypto cash” lead to a systemic collapse.
“The future of money will feature gradual evolution,” Roubini writes, “not the revolution that crypto-grifters promised.”
FAQ ❓
- What is Roubini’s main critique? He warns that Trump’s crypto push is reckless and destabilizes the U.S. economy.
- Which laws are at issue? The GENIUS Act and the upcoming CLARITY Act both promote stablecoins.
- Why does Roubini call stablecoins risky? He argues they lack proper oversight, creating a “ticking time bomb.”
- How does he compare crypto to gold? Bitcoin fell 40% while gold soared 60%, proving crypto is no safe haven.