Whereas the world was distracted by the Epstein debacle, legislators launched the GENUIS Act that might allow the US authorities to control stablecoins. The GENUIS (Guiding and Establishing Nationwide Innovation for U.S. Stablecoins Act), primarily sponsored by Senator Invoice Hagerty (R-Tennessee), permits the federal government to supervise, regulate, and outline the $250 billion stablecoin market.
Now, stablecoins differ from cryptocurrencies as they’re pegged to a secure asset corresponding to a fiat foreign money or commodity. Cryptocurrencies are allegedly allowed to freely function available on the market based mostly on provide and demand. The GENIUS Act will peg stablecoins to the US greenback and require issuers to take care of a 1:1 reserve ratio in short-term treasuries or money.
Issuers holding over $10 billion in excellent stablecoins might be topic to federal regulation beneath a newly created oversight company. These issuers will now be deemed monetary establishments and required to fulfill the standard banking laws as effectively. Stablecoins can now not pay curiosity or act as a substitute for bonds. Maybe most notably, issuers should not meet anti-money-laundering (AML) laws, that are set to offer the federal government with limitless entry to funds.
I simply voted NO on the Rule for the GENIUS Act as a result of it doesn’t embody a ban on Central Financial institution Digital Forex and since Speaker Johnson didn’t enable us to submit amendments to the GENIUS Act.
Individuals don’t want a government-controlled Central Financial institution Digital Forex.… pic.twitter.com/NnkeIOH0dE
— Rep. Marjorie Taylor Greene?? (@RepMTG) July 15, 2025
So primarily, the federal government is popping the stablecoin right into a digital greenback of kinds. The priority right here is that this might delve into digitizing all foreign money and making a CBDC. The act particularly supplies the federal government with the authority to “block, freeze, and reject particular or impermissible transactions.”
“A permitted fee stablecoin issuer shall be handled as a monetary establishment [and]…shall be topic to all Federal legal guidelines relevant to a monetary establishment situated in the USA together with…insurance policies and procedures to dam, freeze, and reject particular or impermissible transactions that violate Federal or State
legal guidelines, guidelines, or laws…”
This provision will not be supposed to guard the world towards drug smugglers and thieves. This provision is meant to grant authorities limitless management over how individuals spend stablecoins. The federal government might have simply frozen the accounts of those that refused the COVID-19 vaccination, for instance, and the Biden Administration admittedly weaponized current monetary establishments to spy on Conservative Individuals via their fee histories.
“Stablecoins are the bait and change for direct-issued authorities CBDCs,” Bitcoin Journal editor Mark Goodwin mentioned, “Stablecoins will be programmed. Precisely like how we worry CBDCs might be programmed. They’re precisely the identical tokenized mechanism… They are often taken out of your pockets. Your pockets will be blacklisted. A variety of the issues that we worry about CBDCs are completely out there throughout the software set of Stablecoins.”
The GENIUS Act has acquired bipartisan help. Though Republican Hagerty championed the invoice, he had bipartisan co-sponsors, together with Senators Kirsten Gillibrand (D-NY), Angela Alsobrooks (D-MD), Tim Scott (R-SC), and Cynthia Lummis (R-WY).
I warned that governments would NEVER enable any cryptocurrency or stablecoin to compete with their very own foreign money. I lengthy warned that authorities was merely tolerating these different currencies up to now as they posed no actual menace. However now the federal government wants the power to tax every little thing to help its perpetual spending. Each digital transaction is traceable. Each digital foreign money is controllable—the final word energy seize.
Certainly one of Donald Trump’s most important marketing campaign guarantees was the prevention of CBDC. The headlines are enraged over his failure to launch the Epstein recordsdata, however the GENUIS Act is a far deeper betrayal of the American those who has the power to usher in a brand new financial system.
