US Congresswoman Marjorie Taylor Greene raised alarms over the GENIUS stablecoin bill, alleging it may serve as a 'backdoor' for the implementation of a Central Bank Digital Currency.
Congresswoman's Concerns
Marjorie Taylor Greene stated that the GENIUS stablecoin bill creates an avenue for the government to effectively introduce a Central Bank Digital Currency, disguised as privately issued crypto tokens. She noted that regulated stablecoins feature 'functional surveillance capabilities' which make them indistinguishable from Central Bank Digital Currencies (CBDCs). In a social media post, Greene emphasized:
> "This bill regulates stablecoins and provides for the backdoor central bank digital currency. The Federal Reserve has been planning a CBDC for years, and this will open the door to move you to a cashless society and into digital currency that can be weaponized against you by an authoritarian government controlling your ability to buy and sell."
Crypto Advocates' Opinions
Greene's comments resonate within the Bitcoin and crypto communities. Bitcoin advocate Justin Bechler commented that the GENIUS Act forces stablecoins into CBDC compliance, making them functionally identical to a CBDC, just without the daunting label. Likewise, Saifedean Ammous, author of 'The Bitcoin Standard', argued that the US dollar, in any form, is essentially a central bank digital currency that is already monitored by the state and increasingly digital.
Risks of Stablecoin Regulation
Jean Rausis, co-founder of the Smardex decentralized trading platform, highlighted that controlling stablecoins gives governments authority over financial transactions. He noted that the ability to freeze or retract transactions renders centrally managed stablecoins indistinguishable from CBDCs. The GENIUS bill was amended in March to include stricter anti-money laundering provisions, sanctions compliance, and know-your-customer requirements, which imply financial surveillance and the potential for transaction censorship. Consequently, there are risks of regulatory capture, including possible governmental seizure of the assets backing the digital tokens.
The GENIUS bill continues to raise growing concerns within the crypto community, which perceives it as a threat to decentralization and increased government control. The discussions surrounding these issues keep raising significant questions about the future of cryptocurrency regulation.
