The GENIUS Act stablecoin bill has reached a new stage but faced criticism from key figures in the United States. Notably, New York Attorney General Letitia James highlighted shortcomings in the bill, leading to widespread public discourse.
Criticism from New York Attorney General
Letitia James wrote a public letter to Congress expressing concern about inadequate investor protection in the GENIUS Act. She noted that the bill leaves loopholes that could allow foreign companies to influence the U.S. digital dollar infrastructure. James urged the need for companies to operate within U.S. jurisdiction and adhere to digital identity verification standards.
Support from Trump
President Donald Trump has shown clear support for the GENIUS Act, urging lawmakers to send it to him swiftly. Despite strong political backing, expert opinions are divided: some believe the bill could temporarily boost trust in stablecoins, while others caution against potential new risks.
The Future of the Digital Dollar
Proponents of the bill argue it could serve as a model for digital dollar rules and oversight by establishing clear legal and financial standards. However, critics emphasize the need for more thorough deliberation to protect the financial system and prevent misuse.
As the House vote approaches, questions arise regarding the wisdom of fast-tracking this bill. Without proper safeguards against foreign control and unlicensed issuers, experts call for a more cautious approach to stablecoin regulation.
