Warning! April 1, 2026. Federal Monetary Policy, Digital Asset Legitimization,and Consumer Risk

WARNING.

April 1, 2026

Federal Monetary Policy, Digital Asset Legitimization,

and Consumer Risk

Issued by Pegisai USA | United States Territorial Licensee, Pegisai Group Intellectual Property

What This Warning Is About

The United States government has taken a series of coordinated policy actions in 2025 and 2026 that together reduce the capital protections for bank depositors, falsely legitimize speculative digital instruments as stores of monetary value, and extend the debasement of the US dollar through new mechanisms while dismantling the enforcement architecture that protects consumers and the financial system from the consequences.

This warning identifies each action, states the specific consumer risk it creates, and establishes the public record of Pegisai USA's objection to each.

Consumer Concern 1:

 Basel Standards Are Being Walked Back in the USA.

Bank Depositor Protections Are Being Reduced.

On January 30, 2026, President Trump nominated Kevin Warsh to succeed Jerome Powell as Chairman of the Federal Reserve, effective May 2026. Warsh has publicly and consistently opposed the Basel III Endgame capital requirements that represent the US implementation of post-2008 international banking standards.

On March 19, 2026, the Federal Reserve, the OCC, and the FDIC jointly issued proposals that would materially reduce capital requirements for US banks. The agencies confirmed in their own documentation that overall capital in the banking system would decrease if the proposals are implemented.

Why this is a consumer concern:

Capital buffers exist to absorb losses before those losses reach depositors. They are the financial system's primary protection against the kind of institutional failure that destroyed depositor wealth in 2008.

Reducing those buffers while simultaneously directing banks to increase their holdings of US Treasury securities does not strengthen the system. It concentrates risk in a single asset class whose value is tied to the fiscal trajectory of a government running annual deficits exceeding $1.9 trillion. Every depositor in every US bank that reduces its capital under these proposals bears increased exposure to the consequences of that concentration.

Why the historical precedent does not apply today:

The United States reduced its post-World War II debt through monetary expansion and inflation from approximately 1950 to 1980. That strategy worked because the Baby Boom generation, the largest demographic cohort in American history, was entering the workforce simultaneously, driving GDP growth, consumption, and tax revenues at a scale that allowed the economy to grow faster than the debt accumulated.

That demographic condition no longer exists today. The working-age population growth rate has decelerated materially. The starting debt level is higher. The demographic engine that made the prior strategy viable is absent.

Attempting to replicate a post-World War II economic strategy without the conditions that made that strategy work results in accelerated dollar debasement without the compensating growth.

Pegisai USA's position:

The reduction of Basel capital standards in the United States is contrary to the international standards designed to protect depositors and financial system stability following the 2008 global financial crisis.

It represents a material risk to consumers.

Consumer Concern 2:

Cryptocurrency Is Not a Store of Value.

USGOV Endorsement Does Not Make It One.

On March 6, 2025, President Trump signed an Executive Order establishing the Strategic Bitcoin Reserve, formally designating Bitcoin as a national reserve asset of the United States and describing it as a unique store of value.

The administration stated that Bitcoin would be treated as a reserve asset comparable to gold.

Why this is factually incorrect:

A store of value must contain value rather than reference a promise that value exists elsewhere. Gold contains value. The metal is the asset. Its value does not depend on the creditworthiness of any issuer, the fiscal restraint of any government, or the confidence of any market. It has functioned as money for 5,000 years and across every major civilization precisely because its value is intrinsic to the asset itself.

Bitcoin contains no value. Its price reflects the collective belief that others will pay more for it in the future. When that belief reverses, value disappears. This is not theoretical.

In 2022, cryptocurrency markets lost trillions of dollars in notional value in a matter of months. Sovereign endorsement does not change the underlying property. It lends the appearance of legitimacy to an instrument that fails the fundamental monetary test.

Bitcoin's fixed supply of 21 million coins, presented as the basis for its store-of-value claim, is a design flaw, not a feature. A genuine monetary system must expand to represent genuine new productive value as it is created.

A fixed supply currency in a growing economy is deflationary by design, systematically transferring wealth from later participants to earlier holders. Approximately 87 percent of all Bitcoin that will ever exist has already been mined, concentrated in a small number of addresses. This is not monetary architecture. It is a wealth transfer mechanism dressed in monetary language.

Why this is a consumer concern:

Consumers, institutions, and sovereign entities making financial decisions based on the US government's designation of Bitcoin as a store of value are making those decisions based on a material misrepresentation of the instrument's monetary properties.

When the collective belief that sustains Bitcoin's price reverses, holders bear the full loss. Sovereign endorsement provides no floor, no guarantee, and no recovery mechanism.

The US government has not committed to purchasing Bitcoin at any price to defend its alleged reserve status.

Pegisai USA's position:

Bitcoin is not a store of value. Its designation as such by the United States government is factually incorrect.

This improper promotion to consumers globally constitutes a material misrepresentation.

Consumer Concern 3:

Stablecoins Are Not Monetary Stability.

They Are the Dollar's Problems in Digital Form.

On July 18, 2025, President Trump signed the GENIUS Act into law, establishing the first federal regulatory framework for payment stablecoins. The administration stated that the Act would cement the dollar's global reserve currency status by requiring stablecoin issuers to back their instruments with US Treasuries and dollar-denominated assets.

Why stablecoins are not stores of value:

A payment stablecoin pegged to the US dollar is not an alternative monetary instrument. It is the dollar system in digital form.

Every structural problem of the dollar, its exposure to sovereign monetary manipulation, its debasement through deficit spending, its weaponization through sanctions and settlement infrastructure, is fully inherited by any instrument whose value is denominated in and redeemable for dollars.

Holding a dollar-pegged stablecoin is the same as holding a dollar. The digital wrapper does not change the underlying exposure.

Why the GENIUS Act does not strengthen the dollar:

A currency whose reserve status depends on regulatory mandates requiring other instruments to hold it as backing is not strong. It is structurally dependent.

The GENIUS Act's reserve requirements create manufactured demand for US Treasuries through regulatory compulsion, not through genuine market preference for the dollar as a store of value. This is circular. It temporarily supports the dollar's reserve status while the underlying fiscal trajectory that drives debasement continues unaddressed.

When manufactured demand cannot keep pace with deteriorating fundamentals, the adjustment is larger and faster than it would have been without the intervention.

Why this is a consumer concern:

Consumers who hold dollar-pegged stablecoins, believing they hold a stable monetary instrument, are exposed to the full debasement trajectory of the US dollar, the counterparty risk of the stablecoin issuer, and the jurisdictional authority of the United States government over both.

The GENIUS Act's reserve requirements do not eliminate these risks. They formalize the exposure and extend it into digital infrastructure.

Pegisai USA's position:

Payment stablecoins pegged to the US dollar are not stores of value and do not represent monetary stability.

Their promotion as such to consumers globally constitutes a material misrepresentation.

Consumer Concern 4:

First Generation Digital Instruments Are Not Basel-Compliant.

They Cannot Function as Institutional Monetary Assets.

Bitcoin, Ethereum, and all derivative cryptocurrencies and stablecoins built on related architectures are classified as First Generation Digital instruments.

They do not qualify as High Quality Liquid Assets under the Basel III or Basel IV frameworks. They cannot be used for regulatory capital purposes by institutions operating under those frameworks.

The Basel Committee on Banking Supervision has determined explicitly that crypto assets do not meet HQLA criteria and has assigned the most restrictive possible risk weighting to bank crypto exposures.

Why this matters for consumers:

The US government's designation of Bitcoin as a national reserve asset, its passage of the GENIUS Act legitimizing stablecoin instruments, and its simultaneous rollback of Basel capital standards for US banks create a contradictory environment in which instruments that fail international banking standards are promoted as reserve assets, while the standards themselves are being weakened.

The institutions best positioned to assess these instruments' true regulatory status, the international banking system operating under Basel standards, do not treat them as monetary-grade assets. Consumers are being encouraged by government policy to treat them as such.

Every institution outside the United States that holds dollar reserves and observes this policy direction faces the same conclusion: the US is simultaneously debasing its currency, promoting speculative instruments as monetary equivalents, reducing the capital protections of its banking system, and dismantling the enforcement architecture that addressed the intellectual property and consumer fraud dimensions of the cryptocurrency industry.

The rational response for non-US institutions is to accelerate reserve diversification into assets that are not subject to US monetary policy decisions. That diversification is already underway.

Global central banks have purchased more than one thousand metric tons of gold annually for three consecutive years.

Pegisai USA's position:

First Generation Digital (FGD) instruments are not Basel-compliant monetary assets.

FGD promotion as institutional monetary equivalents is a misrepresentation of their regulatory, structural, and material status.

The rollback of Basel capital standards in the United States compounds this misrepresentation by weakening the United States’ economic framework within which its non-compliance is most clearly visible.

Public Notice:

Alkaimi’s Second Generation Digital Monetary Mechanism (AIDM)

Is Not a Stablecoin and Is Not Subject to the GENIUS Act.

The Alkaimi Financial Ecosystem's Asset-Backed Income Producing Digital Money mechanism, the AIDM, is categorically distinct from payment stablecoins as defined by the GENIUS Act.

This distinction is legally precise, architecturally fundamental, and directly relevant to consumers evaluating the AIDM against the instruments described in the prior sections of this warning.

Why AIDM is not a stablecoin:

The GENIUS Act defines a payment stablecoin as a digital asset that an issuer must redeem for a fixed value, pegged to a national currency, backed one-to-one by dollar-denominated reserve assets.

The AIDM does not meet this definition on any dimension.

a)    It is not pegged to any sovereign currency.

b)    Its value derives from a verified, underwritten, insured, income-producing tangible asset, expressed in the ecosystem’s own atomic unit of value, the Universal Value Unit, which is independent of any sovereign monetary policy decision.

c)    It is not backed by Treasuries, dollars, or any dollar-denominated asset.

d)    It is backed by the specific, verified, tangible asset established in its column at the moment of issuance.

The GENIUS Act explicitly prohibits payment stablecoin issuers from paying holders any form of interest or yield.

The AIDM is, by design, income-producing. The income generated by the underlying productive asset flows continuously through the column to AIDM holders.

This characteristic alone structurally excludes the AIDM from payment stablecoin classification.

Why the AIDM's legal foundation predates and is unaffected by the GENIUS Act:

The AIDM is structured and issued as a private monetary mechanism under an established, globally recognized, legal framework governing negotiable instruments, commercial paper, and private monetary instruments.

That framework has centuries of legal history, is recognized across every major jurisdiction, and operates within and alongside sovereign currency systems globally without conflict.

The GENIUS Act does not amend, replace, or circumvent that framework. It creates a new regulatory category for a different class of instrument.

The AIDM operates in a legally distinct category that the GENIUS Act neither governs, does not constrains, nor applies to. The AIDM's legal foundation predates every piece of cryptocurrency legislation enacted by any government.

Why this is relevant to consumers:

The policy actions described in this warning represent a systematic legitimization of instruments that fail monetary tests, a weakening of the standards designed to protect depositors, and an extension of dollar dependency into digital infrastructure.

The AIDM was designed to address these failures precisely. It contains value rather than referencing it. It is income-producing rather than speculative. It is jurisdictionally neutral rather than dollar-dependent. It operates within the existing regulated banking system rather than alongside it or in opposition to it.

It is not subject to the GENIUS Act because it is not the class of instrument the GENIUS Act was designed to govern.

PUBLIC NOTICE OF INTELLECTUAL PROPERTY RIGHTS

Pegisai USA holds the United States territorial license to intellectual property owned by the Pegisai Group's intellectual property holding company, including intellectual property relevant to the tokenization of data on peer-to-peer networks, digital monetary mechanisms, and related technologies.

Pegisai USA has previously placed on public record, in warnings dated April 10, 2022, April 20, 2022, and November 20, 2022, that the peer-to-peer network architecture underlying Bitcoin and derivative cryptocurrency instruments incorporates intellectual property belonging to the group, used without license, without compensation, and without acknowledgment.

The Trump administration's Strategic Bitcoin Reserve, its designation of Bitcoin as a national reserve asset, its passage of the GENIUS Act establishing a federal framework for stablecoin instruments built on related technology architectures, and its dismantling of the Department of Justice's National Cryptocurrency Enforcement Team in April 2025, extend and amplify the use of intellectual property the group has publicly documented as belonging to it and remove an enforcement mechanism that had been accumulating the evidentiary record relevant to these matters.

Nothing in this warning, in any prior warning, or in the group's public communications constitutes a waiver, abandonment, or license of any intellectual property right. All rights are expressly reserved. This warning constitutes public notice of those rights in connection with the specific policy actions identified herein. It is intended to be relied upon as such in any subsequent legal proceeding.

This warning is issued by Pegisai USA in its capacity as a licensed holder of intellectual property relevant to the subject matter described herein and as a party with an interest in the integrity of the global monetary system and the protection of consumers from material misrepresentations of monetary instrument properties. It is provided as a matter of public record, subject to the confidentiality obligations and regulatory constraints applicable to the operations of the Pegisai Group and its affiliated entities. Nothing in this warning constitutes legal advice, financial advice, or investment advice. Recipients should obtain independent counsel in their own jurisdictions regarding the matters described.