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Nonprofit Organizations and Digital Assets, Beginning with Stablecoins

In July of 2025, the U.S. Congress enacted a law titled: “Guiding and Establishing National Innovation for U.S. Stablecoins Act” (commonly referred to as “the GENIUS Act”). This law would permit the issuance of a form of digital asset known as a “payment stablecoin” that would be used only for purposes of payment or settlement and not investment. Among various entities, payment stablecoins maybe issued by depository institutions but are not federally insured. Rather, they are supported by the requirement that every payment stablecoin issuer maintain a reserve fund of equal value to its outstanding payment stablecoins in U.S. dollars or items of a similar form.

In the course of implementing the GENIUS Act, the U.S. Department of the Treasury requested comments from the general public with respect to future regulation. The memorandum below was submitted in response.

From: Lori G. Nuckolls, Public Policy Researcher and Writer, Philosophy, Law and Politics (lorigaylenuckolls.blog)

To: U.S. Department of the Treasury, Attention: Office of the General Counsel, 1500 Pennsylvania Avenue NW, Washington, DC 20220, Via Electronic Submission: https://www.regulations.gov

Re: GENIUS Act Implementation Comments, TREAS-DO-2025-0037, 90 Fed. Reg. 45159-45163 (Sept. 19, 2025), 90 Fed. Reg. 47251 (Oct. 1, 2025) (Submission date extension) 

Date: November 1, 2025

I. Introduction

           The GENIUS Act, 12 U.S.C. §§ 5901-5916 (2025), was enacted with the legislative purpose of providing legal guidance and regulation in the use of stablecoins as a digital asset. A statutorily created “payment stablecoin,” denominated in U.S. Dollars, would be issued by legally approved entities and would allow entrance into the digital marketplace in a safe and sound manner. 90 Fed. Reg. 45159 (Sept. 19, 2025).  In regulating the issuance of payment stablecoins by subsidiaries of depository institutions, specifically nonprofit depository institutions such as credit unions, the U.S. Department of the Treasury should consider regulations that support and permit as well require the nonprofit organizations to honor their asserted charitable mission and purpose. With respect to the credit union, this would be pursuance of its historical mission and purpose of enabling its governing members to obtain access to historically unavailable financial services, develop financial literacy, and transition into a competitive socio-economic environment premised upon self-government and self-sustainability. Credit unions which have already successfully entered the heretofore unregulated digital asset marketplace offer extensive and direct training to leaders, staff, and members to avoid financial loss.  Participation of credit unions, large and small, in a well-regulated digital asset marketplace would facilitate the long-sought self-government and financial growth of members.

           The Department of the Treasury should consider that nonprofit financial institutions bear a higher ethical standard than do for-profit entities. Their existence depends upon their reputation within the communities they serve and the absence of their engaging in intense competition with their peers. Credit unions rely upon the trust they engender in society, not to mention donors, volunteers and members. In governing the payment stablecoin activities of all nonprofits, including credit unions, regulators should premise requirements upon the principle that the trust engendered by the conduct of the nonprofit organization is based upon not only the appearance of propriety but also upon the absence of even the appearance of impropriety.

           As a consequence, regulation could guide nonprofit organizations in achieving balance between engaging in authorized emerging digital assets and guaranteeing the financial stability of the communities served. Whereas, unleashing digital assets in a scarcely regulated environment to enable the efficiency, directness and globalization emerging digital technologies provide, would be an example of dialectical creative destruction. And, this achievement of positive development while permitting a threshold level of hardship is to be mitigated in the regulatory process. Specifically, in the historically financially fragile communities of the credit union, little is achieved by regulation allowing entrance into the digital asset marketplace if the burden of greater risk is endured by the financial communities most in need. Thus, questions arise as to how regulation of the nonprofit organization is to be structured in theory and practice.

    II. Credit Union Subsidiary Issuers of Payment Stablecoins: a Theory of Regulation to Avoid the Creative Destruction Dialectic

                  The GENIUS Act currently provides that all issuers of payment stablecoins, state and federal, are required to meet federal standards. 12 U.S.C. § 5903(c) (2025).  In regulating nonprofit organizations and, guiding regulation by the National Credit Union Administration of credit unions and the distinct communities they serve, perhaps the Department of the Treasury could consider the theoretical doctrine of the “veil of ignorance” established by American philosopher John Rawls. In the veil of ignorance, Rawls suggests that society place itself in the “original position” in which each individual in society envisions oneself to not know one’s specific place in society. (Rawls, A Theory of Justice (1971)).

                  In this case, the principles of the veil of ignorance guide governing leaders and citizens in reaching agreement as to public policy, law and regulation. Choices in law would be determined by a general understanding as to what being a citizen should mean. Commonality of thought would arise from leaders and the public alike perceiving themselves guided by the veil of ignorance under which they reach decisions and enact laws without consideration of their own personal circumstance and condition. Rather, each person deems their position to be that of those most vulnerable and in need. And, in turn, they seek a legal structure most capable of providing a just and fair society.

                  Specifically, the Department of the Treasury would identify with credit union staff and members most benefiting from the financial services and training provided and least familiar with emerging digital asset technologies. Safe harbor regulations for credit unions and other nonprofit organizations would guide the ambitious and encourage the wary ones unfamiliar with the digital asset marketplace. For, both are truly outnumbered by for-profit entities. In doing so, credit union regulation, in particular, would allow financial growth through the creative use of digital assets while maintaining a safety net for the credit union governed by members most in need of financial literacy and growth.

                  The GENIUS Act and its framework for the issuance of payment stablecoins as a creature of statute is a blank slate. It enables the beginning of a new economy premised upon regulation in the John Rawls original position, derived from the veil of ignorance. For example, both regulators and credit unions, including their issuer subsidiaries, would envision themselves in the position of a credit union with truly dependent members situated in a community of similar prospective members increasing in number. To continue in existence, this credit union and its members must be knowledgeable of market development, namely the advent of digital assets. In this position, Treasury would govern  with reference to legal standards that would enable an understanding of rights, powers, and privileges, as well as the risks they engender. From this new beginning, credit unions would be able to implement risk assessment policies allowing the balancing of legally authorized conduct against the forbearance of some legally permitted activity in order to maintain trust and goodwill within the community. For, credit unions might not need to be as ambitious and as competitive as the GENIUS Act possibly allows.

    III. Conclusion

                  With the GENIUS Act as a beginning, Congress and the administrative agencies may readily provide financial regulation of all nonprofit organizations as they enter every aspect of the digital asset marketplace. In guiding this transition, the law should promote new strategies of growth and risk management as to digital assets as it has historically with respect to more traditional financial markets.

    Is There A Panacea For The Masses?

    World history contains reference to the many forms of communication shared. The lyre player, knight, storyteller, dramatic troupe, athletic league, not to mention pamphleteer and more. All impart a unique view of current events. The number and diversity in these forms ensure that there is access to information.

    The question arises: how should these various forms of communication be governed? We ask what is the proper purpose of the regulation? And, how extensive should this regulation be?

    The extent of regulation should depend upon the purpose of the information. Is it intended as a panacea, a manipulation. Or, does it reflect the obligation of certain nongovernmental institutions to provide sufficient information for the public to maintain its representative democracy.

    To review and decide upon rules governing our information, both leaders and the public must define the concept of manipulative panacea. Is the purpose of the information moral, legal and rational? All regulations should place a duty to safeguard the public from communication that improperly influences and deludes more than informs.

    Improper influence and delusion is often imperceptible. Thus upon whom is the burden to decide whether something constitutes honest information, regardless of whether in the form of musical performance, drama, athletics, printed material or other forms of communication?

    In the thinking of some we do not begin as we become. We are formed and develop as we learn, absorb and reflect. This we do individually and collectively as we communicate. Perhaps purpose and intent and not content should govern our expressions of community.

    Lori Gayle Nuckolls

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    When Was There Last Enforcement Of The American Identity?

    Why is there a declining sense of community in America? Less active participation in one’s neighborhood, religious organization and charities is occurring. Could this be a result of an increasing awareness of the current American social identity and our failing to achieve or actualize our identity as described by the literal wording in our time honored governing documents: the Declaration of Independence, U.S. Constitution, enforcing statutes and interpreting judicial opinions.  Many blame the atomization of society upon social media and Artificial Intelligence. But, perhaps, popular resort to an obsession with the arts of new technology is a remedy of this absence of human connectedness and not the cause.

    There are some attributes of personhood in America that require public discussion and enforcement by the law. For, without enforcement, trust in American society and government ceases to exist. Many of these laws in want of enforcement involve social conduct and behavior that are prerequisite to the rights and liberties of American law.  This is not a reference to the future recognition of new rights and liberties, though there probably will be some new ones overtime, but, instead, a focus upon the long ago designated crimes that undermine democratic American society: incest, truancy and  illegal immigration.

    Enforcement is necessary because American democracy is premised upon the sanctity of the individual as each person obtains learning and an understanding sufficient to engage in self-determination and self-government. Incest is prohibited owing to the scientific rationale that children produced from such relationships often suffer from genetic impairment and the social rationale that the relationships often result from abuse and exploitation creating a sense of shame and inferiority.

    School attendance is a fundamental requirement for citizens to be able to function and participate as active members of the voting public. This includes an adequate skill level in an arts and sciences curriculum, with vocational training available. And, as a nation of immigrants, America demands the absence of the abuse and exploitation of those seeking liberty from oppression in other lands. Without a path to legal residency they lead a life of illegal employment, want of civic involvement and nonexistence of social integration.

    There are newly recognized civil rights and liberties in the modern era: integrated schooling (1954), contraception (1965), integrated relationships (1967) abortion (1973) and same-sex marriage (2015). However, the theories and rationales underlying prohibitions against incest, truancy and illegal immigration support the emergence of the person upon which the foregoing more recently acknowledged rights and liberties exist as an expression. Without the attributes resulting from the absence of incest, truancy and illegal immigration, one may not partake in fair schools, private relationships and self-governance.

    We must look to the very foundation of America, below our officials in all aspects of government to the concept of the Rawlsian “original position” in which each one of us imagines that we do not know our place in society. From this position, we conceive of what our world should be. We must begin again to establish our society and government from its description in our essential documents. Enforcement is necessary according to modern terms for a modern era. And, individual existence in such a society requires a viable economic structure of single income livelihoods and feasible higher education tuition. For, even the cost of a public college or university education is beyond the ability of most parental incomes as well as the incomes of most graduates who rely upon student loan financing.

    Ongoing progress and development has and will improve law enforcement as it has given rise to the emergence of new rights and privileges, such as scientific advancements in contraception, abortion and in vitro fertilization, which have resulted in newfound debates over the meaning of life. Similarly, incest prohibitions may be reformed with scientific developments in the field of genetics.

    Currently, we must ask both government and ourselves as members of the public to look to the connection between our pervasive social ills and the absence of the enforcement of century old legal restrictions. Eliminating duplicity and inefficiency will only make our true society and government more visible and render more feasible achievement of the American dream.

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    A Natural Aristocrat for DNC Chair

    In selecting the next Chair of the Democratic National Committee, democrats should learn from mistakes made in the most recent election this past November. The losses, president and below, are not solely the fault of current Chair Jamie Harrison. If any reason is to be cited, perhaps Harrison did not stress upon party members the importance of supporting candidates like himself. And, the next Chair should do so. A well-educated, wise, and worldly Democratic Chair would attract similar candidates.

    Need we do much to remember the roles of Franklin Roosevelt and John Kennedy in history, not to mention Bill Clinton and Barack Obama. Democrats must admit that both Vice President Kamala Harris and President Joe Biden are not historical figures. Jamie Harrison would present a better candidate.

    Democrats possess an opportunity in recently announced DNC Chair candidate Ben Wikler, currently Democratic Chair in Wisconsin, to elect a DNC Chair who may  be held accountable to a known standard of ability. He and Jamie Harrison should be compelled to bring forth candidates, local to federal, similar to themselves. The nation must rely upon learned elites as its source of governance. This presidential election did not do this and qualified candidates further down the ballot lost.

    Partisanship is not the issue. Rather it is the essential principle of democratic government, that of leadership by a natural aristocracy, derived from its populace with an equal access to education and information. Both Harrison and Wikler are meritocratic leaders. It is possible that more candidates of similar quality will announce for the position as Chair. However, Democrats, and all Americans, must abide by the manner in which a democratic   society must be governed.

    Lori Gayle Nuckolls

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    Utopia?

    Will any society ever achieve perfection or an ideal structure of government? Many philosophers and political thinkers have offered utopian theories. How do we define a democratic utopia in the modern era, and how would it be expressed in practical politics, namely, in individual participation through self-government and self-expression?

    Is it necessary for political candidates and elected officials to possess individual theories and understandings of what constitutes an ideal government and an ideal society? Citizens and governing officials look at democratic society from the “grassroots up” to the world above. Yet, perhaps we should also share in the belief that society and government be viewed from the top down, and that each of us should possess an individual understanding and opinion as to the manner in which we think society and government should be structured. Our choice of candidates would then be based upon whether their view of the world is close to our own.

    Regardless of the place of one’s political opinion on the ideological spectrum, from radical to conservative, our individual participation in an election might be determined by our sense of what our society should be. For each of us, perhaps, utopia is our view of the ideal world.

    Lori Gayle Nuckolls

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    Does Catholicism Support Fascism in America?

    As a representative democracy, the United States relies upon a sovereign citizenry of self-governing individuals who place government and country first and foremost. Before the world is debate on the subject of how society and government should be structured. Should religious thought be a source of law and government? Should education be free and fairly available? How should labor be organized and employed and what should be its source: a bountiful citizenry and a boundless immigration?

    At this the time of the celebration of America’s Declaration of Independence, the Fourth of July, one looks to the origin of the government in the Protestant religion.  Yet, from its beginning the nation prided itself upon the legal right of all to practice the religion of choice upon its soil. However, the question arises of whether America depends upon the tenets of the Protestant faith, one of which is the belief in self-governing congregations.

    Catholicism in America is of a longstanding tradition. Its practitioners have faced discrimination and hardship. They defer to a worldwide authority. Does the Catholic faith contradict the democratic principles of a representative government, an individual’s right to self-govern and the existence of a unilaterally sovereign populace? Is it proper for working Americans to be anesthetized by a worldwide church that stands in contradiction to individual nations? Should all individuals live under a government similar to America’s, one that provides both democracy and a safe and sound work environment with an opportunity to practice a faith of choice?

    Forcing a public to look to religion instead of to law for employment security is to deny law to all. In the guise of religion, some Americans defer to the Vatican as a means of surviving under the American government. For some, the American government becomes like a fascist society where the leader of their faith is their sole authority. They are then living under a combination of religious principles, American law enforcement and a central worldwide authority. This is the beginning of fascism in America.

    In solving this dilemma, Americans might individually look to their government, from top to bottom and bottom to top. Ensure that America abides the rule of law and that laws are duly reformed and enforced.  Fairness and justice in America permit a capitalist society of honest competition and safety and soundness. Free and adequate education from private and public funding of tuition rather than from student debt is possible. The United States was founded upon the principle and theory of a natural aristocracy. Let’s found one.

    Lori Gayle Nuckolls

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    Science and the Right to Abortion

    Judicial review in the United States serves a fundamental purpose in American government, it permits the courts to ensure that the acts of the other two branches of government, the legislative and executive, abide the Constitution. In doing so it enables the sovereign citizenry to create a legitimate representative government. As American society develops it changes its views of the nation and the world and, as a result, the laws by which it lives. Over time, the views of its judges as seen in their legal opinions also change.

    One must remark that political opinions in the United States have been modified extensively to the extent that the public has completely  changed its mind on many important life defining issues. As a result, certain laws and legal opinions contradict preexisting ones. For example, the legality of racial segregation became the right to racial, integration. The illegality of contraception became the right to birth control.  The illegality of racial miscegenation became the right to interracial marriage. The illegality of abortion became a legal right to private abortion. The illegality of sodomy became the right to homosexual relationships. The illegality of homosexual marriage became the right to same-sex marriage.These changes in American law occur concurrently with noteworthy developments in social customs, science and technology that render the population able to envision present society in a new manner. Some regard these legal developments as not occurring with sufficiency to be adequate or just.

    With respect to the legal recognition of a right to abortion by the judiciary in 1973, many social and scientific developments have taken place prompting judicial restrictions upon this right in 2022. In example, in vitro fertilization is a very common practice. As a result, issues before society are when a right to life begins and whether one’s power to create this life is accompanied by a power to destroy it. Contemporary opinions also include those arising from whether there is a governmental power of capital punishment or a private right to assisted suicide for the terminally ill.

    American society must address the legal question of what constitutes life and what are its attributes.  Could the concept of in vitro fertilization include a right to property? In discussing abortion, America must reconcile its power to begin and end life with newfound scientific developments.

    Lori Gayle Nuckolls

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    Natural Aristocracy In A Time Of Digital Technology

    Transitions in history often occur when scientific and technological development create social change. Our 21st century of the postmodern era portends such social change. The digital technology before us and continually advancing, whether it be mobile phones, social media, websites, virtual reality, cryptocurrency, artificial intelligence, or the myriad not mentioned and not yet invented, are a social conundrum. In implementing this new technology, a safeguard is required to provide government by society’s intellectual elite.

    The objective of every democratic republic is a society of individuals treated equally by governing law. Equality is not economic; it is in the right to participate equally and to be accorded due and just reward for one’s ability. In the wisdom of a British philosopher and politician of old, Edmund Burke, this was, and should ideally be, government by a natural aristocracy. It arises from the population of the republic, from the citizens academically cultivated who defer their social doctrines and privileges to those of their country.

    The American democratic republic, as well as those around the globe, rely upon an effective self-governing citizenry. This citizenry arises from a society of individuals whose ability to self-govern is cultivated from their early years. Self-government and participation in society depend upon academic institutions and cultural attributes that are both inclusive of all and supported by a national government that is derived from the country’s natural aristocracy.

    Today, we look to our social melting pot, as popularized in the theater of the early 1900s. We use our governing democratic institutions to cultivate children into adults, both as citizens and immigrants, to place the role individual in society first and foremost before all other affiliations. Each individual must learn to self-govern and participate in the various strata of society and the governing institutions as a self-governing individual. Cultural and social duties and privileges are subordinate to the obligatory patriotic devotion to one’s country cultivated in children and adults.

    In enjoying the advancements of our increasingly more computerized society, we should ensure that social and governmental advancements parallel all scientific and technological advancements. We must guarantee that no harm results. In benefiting from new technology, we need not experience the historical dialectic of: advancement – destruction – development.

    Democratic republics are not founded upon tyranny, irregardless of whether an autocrat or the public majority. The invention and application of digital technology must be accompanied by education for all and government by the republic’s best and brightest representing the people. Only when a natural aristocracy governs is a democracy a country of equals.

    Lori Gayle Nuckolls

    Is the United States of America under Siege?

    Following the storming of the United States Capitol on January 6, 2021, in the ordinary course of legislative business, one must ask the place of this event in history. To what does it give rise, where does it lead America, and what does it indicate for its citizenry?

    One could argue that there is too much hostility within the American majority, too much dissension, for America to continue with a republican form of government, for the United States Constitution to remain. A democratic military relies upon patriotism and a caring respect for government. Its military is derived from the majority population. If the majority no longer believes in justice and freedom under the U.S. Constitution, the military will not possess the moral force to protect the government from threats both at home and abroad.

    The storming of the American Capitol was a rebellion, a failed revolution. The cause cannot be deemed that of madness or irrationality. Rather, it must be acknowledged to be an expression of a competing ideology. For, regardless of the methodology of the acts of violence against a government, such acts embody and express an ideology.

    Consequently, diplomacy is required to reach agreement and compromise, to heal a country and the world. Denial of the existence of the beliefs and positions of the rebelling entity begets further uprisings and intermittent rebellion. An inclusive truce is necessary. Moreover, in the world’s history, uprisings, rebellions and revolutions, including the American Revolution, have long been subjected to the ad hominem of madness and irrationality, without their being evidence of proof other than reference to acts embodying a competing ideology.

    Why Did the Attempted Revolution Occur?

    Throughout the world’s existence, history’s development and progress has exhibited great hardship and horror. The storming of the American Capitol could be an example of the development of the world by means of such hardship and horror. Many deem this to be development through the reason and spirit in history, the Hegelian dialectic. According to Georg Wilhelm Friedrich Hegel, in the world there is the existence of the status quo; the critique or destruction of the status quo; and then the collective synthesis of a new, positive result in history. One would attribute to this phenomenon, the slow but developing and evolving state of human progress.

    In some sense, Hegel deemed this the actualization of the known and preexisting universe and cosmos by the spirit of history. Yet, those living in each intermittent era of unknowing naivete ask why the negative, destructive critique of the status quo is necessary to evolve and develop, regardless of the result produced. Does it have to do with human nature and the mind of man? Does reasoned critique possess limits necessitating a reliance upon negative destruction? If a destructive negation is not necessary, perhaps society should strive to divert destructive animosity toward reasoned discussion.

    In the thought of Hegel, we ask what is the positive result of the negative undoing and destruction of the U.S. Capitol. Does the storming indicate that, in addition to criminal penalties, some form of political reform will or should result? Could the rebellion give rise to either the creation of third and or fourth political parties, or a parliamentary form of government?  

    If third parties are cultivated, ideology through rebellion could express itself lawfully in the form of party platforms and representatives in elected office.  If transition into a parliamentarian form of government, the United States would no longer rely upon a separately elected executive with a greater concentration of power in the form of a right of veto over the legislative body. Parliamentary government would require a significant reform of American government. Yet, rebellion and attempted revolution are significant acts.

    There must be a humane and positive response by government and society to the rebellion, regardless of what one believes to be its cause. Rebels seek an answer to their demands. They seek their definition of justice. We cannot loft above them an ideal, utopian definition of justice which has been long deemed beyond reach by the world’s greatest elected officials, academics and philosophers. We must seek and strive toward a viable definition of justice: the right of all people to political participation through peaceful expression.

    If America abided the principles and text of the Constitution, specifically, and rule of law, generally, differences and disagreements would be settled in the context of traditional political debate and law making. The United States must maintain the quality of its existence as a representative democracy governed by a natural aristocracy. It must act according to law and include the concerns and needs of all within the course of day-to-day debate. Ignoring any segment of the public results in an emotional response such as rebellion. Providing justice to all will avoid such in the future.

    America should not attempt to avoid Hegelian peaceful critiques of the status quo, for debate and critique are the basis of the American political system. But, Americans must channel critique within structural modes of expression. From the ordinary member of the public to those occupying the highest office in the land, political participation and the ability to self-govern combine to avoid the recent cathartic event witnessed in the storming of the American Capitol. For, no rebellion or revolt takes form in short order. No one person could be responsible for persuading so many to act against their country. Revolt and rebellion result from a long felt disheartening of many people with their country. The only remedy is to provide a sense of enfranchisement and receptive, meritocratic government.

    As J. Hector St. John de Crèvecoeur stated: from soil values grow. American democracy is premised upon the dignity of the individual and respect for all. A storming of the bastion of the people’s government indicates that an overwhelming number of citizens require that government be restructured to meet their needs. The United States needs to bring democracy closer to the soil of America.

    Third Parties May Be an Answer to America’s Current Debate

    Third parties are often factions that leave major parties over certain issues. America must discern the grievances possessed by America’s rebels. They ostensibly are supporters of former President Donald Trump. However, such violence coalesces and surrounds more than one person. It evolves over time and involves a plentitude of issues.  The Capitol revolt was not the temperance party, the women’s suffrage movement or Teddy Roosevelt’s Bull Moose party. These ideological expressions were serious and longstanding. Yet, they did not reach the level of violence as the recent storming of the American Capitol. Consequently, the deep seated, violence inducing concerns and grievances of the Capitol rebels rely on more than what might be offered by one person. For, in expressing their grievances, they sought to destroy the very government former President Trump represents. 

    Permanent realignment of the two major political parties in America into third parties may require some phenomenon such as a rebellion or near revolution. Broad based, grassroot rebellion expressed in the form of movements such as the Capitol rebels could coalesce to form a third party. Some of the rebels could be akin and ideologically similar to the Libertarian party which acknowledges an expression of faction and inter-party strife within the two major parties in America, with the Libertarian party combining fundamental American ideals with conservative economics.

    Despite the dramatic events of January 6th, would the Capitol rebels fail as a third party as have most others in American history? The two major parties in America could adopt the ideological grievances and positions of the Capitol rebels and thus lessen any incentive to form new parties. Yet, the Capitol rebels may be so long underrepresented in politics and government that they cannot avail themselves of traditional forms of political participation that a political party offers. Perhaps, for the sake of democracy and diplomacy, citizens who agree and are sympathetic with the positions of the Capitol rebels should lead a new party to which the rebels could belong. This would transcend typical obstacles to formation of a third party such as inadequate financial resources and local and state support. And, a greater increase in popular participation in politics would benefit the emergence of a new party.

    The Capitol Rebels Are Due the Benefits of Political Association

    Regardless of punitive sanction, the civil self-government of the Capitol rebels should be cultivated. Political parties provide an opportunity for self-expression and civil debate in pursuit of principles and public policy goals. Parties provide a didactic function in educating their members in the art of civics and government. Most importantly, parties foster trust among members by encouraging members to self-govern in a trustworthy manner. Political parties permit representation in a republican form of government. Political parties diffuse the tyrannous majority. This is the guidance the Capitol rebels need.

    Political parties embrace general philosophies and thus permit inclusion of as many people as possible. As a result, over time America has evolved into a two-party system.  The party of traditional moral values and business interests is the Republican, and the party supporting working class labor and minorities is the Democratic.  To transcend this duopoly, third parties must draft a broad-based philosophy that is not a single-issue attraction. In what way do the two major parties not offer ideals, principles and ideology appealing to the Capitol rebels so that a third party would not be a viable alternative?

    Is the American experiment in democracy more democratic, more fair and more just with two, adverse political parties willing to expand and be more inclusive? To return to sound and civil government, America must enumerate the possible philosophical bases for third parties, including the Capitol rebels.

    In what way do the Capitol rebels represent diversity within the United States? Are they urban and rural, of higher education and not? What are their unifying principles and concerns? In what way did the ideology of Donald Trump find expression in the rebellion of January 6th? Could the Capitol rebels support the theories of meritocracy and natural aristocracy upon which the United States is founded?  Promoting a third-party expression of fascist rebellion could be avoided in a free democracy. Listening to and incorporating itinerant concerns into the political structure would be preferable to forcing violent forms of expression. Third parties possess grievances often expressed through violence when the subject of structural exclusion.

    Supporters of former President Donald Trump indicate that they are considering forming a third “Patriot Party.” This demonstrates the perceived need for structuring the public support he possesses into a viable form of expression. Whether one considers Donald Trump to be a “cult of personality” leader or not, he cannot utilize his support unless it assumes effective form. Also, he must create a generational legacy amassed around his positions, opinions and ideology that transcends his being deemed a mere one election figurehead.

    Perhaps, the Capitol rebels will create a fourth party. Another grassroots movement may become as entrenched and as well-known as the Patriot Party.  Would such a fourth party readily follow on the coattails of the Patriot Party if it quickly announced its existence?

    Former President Donald Trump holds grassroot Republican support and must maintain its trust. He must do so by cultivating civil participation. A rebellion or attempted coup is an indication that the cultural voluntary servitudes of entertainment and athletics are no longer an effective panacea. They are enjoyed but do not support or supplant reasoned self-government. Rebellion indicates the cry for a remedy, and the rebels themselves have no answer. Exchanging attributions and projections of blame by governing officials will only result in continued public negativity. People must be encouraged from a grassroots level to engage in traditional political participation.

    Representative Democracy Is the Answer

    As a republican form of government in the modern era, America is a great, expansive experiment. In merely three hundred years, it has demonstrated a slow but effective development toward justice, fairness, equality and inclusion. A small yet painfully effective rebellion cannot undermine three hundred years of history. Rather, violent uprisings indicate a need for even further progressive democracy.

    A democracy must be premised upon trust held by the people in each other, among themselves as they engage in self-government, as well as trust evoked by the government between it and its citizenry. A political party must similarly remain true to its principles and party platform. Promises unkept are hypocrisy. In the recent era of duopoly, no competition exists between the parties. They each have turf dominated by party leadership and no incentive to honor promises made each election. As a result, elections flip flop with exchanges in elected figureheads with no real change in power possessed.

    As a result, the U.S. Capitol was stormed by the partyless and unrepresented. They are ostensibly amassed by and the adherents of Donald Trump. But, do they know anything more than that he sought their support. What specifically do they stand for given that they sought to destroy the government they sought for him to lead? The only answer for the rebels is their participation in the American government in some structured form. And, this means participation in the form of a political party, one currently existing or a new, third party. Or, do they remain American citizens who feel that they will always be outside the bounds of government, always unrepresented.                                  

    Lori Gayle Nuckolls

    The Hegelian Dialectic Of Capitalism And Socialism In The American Bureaucracy

    Socialism may be impossible yet it is unavoidable and must occur in cycles of reform with Capitalism. In the Hegelian theory of dialectical materialism of existence, critique and synthesis in remedy and solution, Capitalism is destroyed in part periodically by Socialist reform and then reborn again. In the United States, Capitalism is structurally restrained by bureaucratic reforms based upon theories of the public interest, nationalism and the commonweal, all theories of Socialist empathy.

    The U.S. Constitution creates three branches of government: the Legislature, the Executive and the Judiciary. The President, as a modern Executive, is empowered with an enormous regulatory bureaucracy which is overseen in a manner of checks and balances by the other two branches. This modern bureaucratic state has placed upon the private sector a primary motive of being that departs from the for-profit motive of Capitalism and imposes that of ensuring legal compliance. In a complex era of high technology and big industry, this Socialist leaning is unavoidable if Capitalism is to survive. And, such regulation, though democratic and Capitalistic in spirit and theory, is Socialist in result.

    This dualism, the points along a continuum of Capitalism and Socialism, in the philosophy of G.W.F. Hegel, is humankind’s striving toward the absolute freedom of the species in actualization of an unknown Idea, the consummation of evolution. Regardless of one’s belief in the source or definition of the Idea, humans evolve incrementally, improving life in their community. The various elements of the community each evolve along the Hegelian dialectic from existence to critique to synthetic improvement. The many elements include: religion, science, philosophy, art, literature and education. An additional element is the economic Capitalist-Socialist continuum which evolves in dialectical form and is expressed in the governing structure of the community.

    Through rational, reasoned reform of its Capitalist governing structure overtime, America has achieved its current bureaucratic state. This bureaucratic state is currently in a period of contraction, with the undoing of some Socialist theories and returning to earlier thoughts of Capitalism. Much of the current trend toward a rebirth of Capitalism is a result of new technology and the creativity it has inspired in the area of commerce. Entrepreneurs are emerging in all business sectors. Americans who enjoy new goods and services and a sense of patriotism economic creativity engenders ask for reforms in government to facilitate further business development.

    The current expression in America of this phenomenon, of a demand for government and economic creativity, is not a full destructive critique of Socialist expressions in the American government and economy. Rather, it is an expression of the Janus dualism in human nature. As history indicates, humans are innately inquisitive and acquisitively self-interested. Humans as a species are also affectionate and emphatic. From the beginning of Colonial America until the current presidency, America has evolved in cycles of “boom and bust,” high surges in Capitalist creativity and profit absent imposing regulation to despairs of economic failure and the lessening burden of governmental business safe harbors and social safety nets. This is an example of the philosophical construct of dialectical materialism.

    In example, the legislature acts in response to changes in popular will with developments in human history. Citizens ask for a repeal of burdensome laws in times of business prosperity and, in turn, for social measures in times of hardship. Unlike legislators, judges are bound by codes of ethics to abide the rule of law first and foremost as it embodies theories of democracy, fairness and justice. These theories should be immutable regardless of the nature of economic times, regardless of boom or bust. So, to what do we attribute judicial repeal of time honored legal precedent, especially when these changes in the law coincidentally parallel new economic events and changes in popular will?

    Judges exercise independent judgment absent partisanship. Yet, in the spirit of Ludwig von Mises and great thinkers from time immemorial, judges acknowledge the essential qualities of human nature – self-interest, greed, empathy and affection. So, too, judicial opinions reflect changes in history and socio-economic developments over time which avail themselves of the Hegelian dialectic as expressed in Capitalist and Socialist theory. An essential question exists as to whether the judiciary must respond to the import of the human creativity these qualities produce and the effect of human creativity upon the community the judiciary governs?

    The American public should discuss the nature of governmental reform as expressed by changes in rights and privileges incumbent within the rule of law. The primary focus is the Hegelian dialectic of the Capitalist-Socialist continuum.

    Colonial America expressed the dialectical continuum with the beginning point of the existence of the individual rights possessed by Native Americans. The discoverers of the New World were encouraged by developments in the means of maritime travel to conquer the Native Americans and, in Capitalist fashion, usurp their property in a theory of survival of the fittest. Yet, the Colonials stepped away from their own usurper, the English monarchy, through many acts and demands of social welfare, namely the survival of humans as individuals, possessing equal rights of individual self-governance and self-determination in a communal environment. The history of Colonial America is one of synthesis for England imposed tariffs as a large, usurpations government providing for English citizens. Yet, the Colonial and Early Americans, themselves, engaged in a Capitalist plantation economy with Socialist theories of paternalism in the maintenance of the institution of slavery and indentured servitude. Native Americans, even today, benefit from theories of Socialism.

    The American Civil War began a critique of the Capitalism of the slave economy. It began with individuals forming the Underground Railroad and the act by predominately Northern slaveholders of permitting slaves to purchase their freedom through learning gainful labor or acts of unrestricted emancipation. The Socialist critique of the then existing Capitalist American economy consummated with the act by President Lincoln of emancipation.

    In response, to newfound competition of Americans of African descent, the judicial opinion of Plessey v. Ferguson was issued imposing business restraints upon Black Americans. This, too, is a dualist, synthetic critique expressing Capitalist and Socialist theories. For, it provided a Socialist business subsidy to White Americans thereby encouraging competition at the expense of Black Americans. The Socialist correction was Brown v. Board of Education. Intervening was extensive public reform in the creation of the American Bureaucratic State in the form of the New Deal.

    America continues the challenge of the bureaucratic state in the modern era. Much regulation is currently challenged to permit new forms of industry. The Hegelian dialectic provides material synthesis of contradiction and paradox to form new laws from new customs and new legal developments in the private sector of contract law and business formation.

    The remedies proposed for the laws currently governing bureaucracies in America are equally along extreme points in a continuum. Some purveyors of conservative legal thought seek a return to theories of non-delegation which would extensively negate the power of Congress to delegate “legislative” power in the form of rulemaking to bureaucratic agencies. More liberal points of view on the continuum would support agencies by expressing great deference to their exercise of rulemaking and adjudicative powers owing to their expertise in highly specific subjects requiring centuries of experience.

    In America, we rely upon the judiciary to honor a truly just midpoint along the Hegelian dialectic of Capitalist and Socialist reform. With the U.S. Constitution in place, we will never return to an economy that is too Capitalist or evolve into one that is too Socialist.

    Lori Gayle Nuckolls