U.S. Congresswoman Marjorie Taylor Greene has issued stark warnings about the newly proposed GENIUS Act, which she believes may lead to the implementation of a state-backed Central Bank Digital Currency (CBDC) and undermine financial autonomy.
Concerns Around the GENIUS Act
Greene argues that while the bill is marketed as a stablecoin regulatory framework, it actually includes features characteristic of a CBDC. She stated, "This bill regulates stablecoins and provides for the backdoor Central Bank Digital Currency."
Expert Opinions on Privacy Risks
Greene's criticism has resonated with several other industry leaders and experts who share her concerns about the potential threat to decentralization. Economist and Bitcoin proponent Saifedean Ammous noted that the U.S. dollar is already largely a digital currency, monitored by the government. Jean Rausis, co-founder of Smardex, added that controlling stablecoins means controlling financial transactions, making them nearly identical to CBDCs.
Potential Consequences for Financial Surveillance
The GENIUS Act has undergone multiple revisions since its first draft, with the latest significant changes taking place in March 2025, imposing stricter anti-money laundering and Know Your Customer requirements. Detractors argue that this leads to invasive financial surveillance, as stablecoin issuers would be required to collect and share customer information and track all transactions.
The GENIUS Act raises considerable concerns among cryptocurrency advocates regarding potential threats to financial privacy and autonomy. The debates surrounding this legislation highlight the need for a balanced approach to digital currency regulation.
