The new GENIUS stablecoin bill is seen by Jean Rausis, co-founder of Smardex, as a way for the US government to gain control over stablecoins, similar to central bank digital currencies (CBDCs). He argues that by regulating stablecoin issuers, the government can monitor and potentially freeze transactions, ultimately leading to more centralized control. The GENIUS Act, introduced by Senator Bill Hagerty, aims to create stricter rules for stablecoins, including anti-money laundering measures. Rausis believes that decentralized alternatives could offer protection against this increasing government oversight. This is part of a broader effort to maintain the US dollar’s dominance in digital payments and protect its status as the global reserve currency.
The recent GENIUS stablecoin bill is raising eyebrows in the cryptocurrency community. Jean Rausis, co-founder of the Smardex decentralized trading platform, claims that this bill is simply a way for the US government to implement control similar to that of a central bank digital currency (CBDC) but through privatized channels.
In a statement to Cointelegraph, Rausis expressed his concerns about the bill. He pointed out that the government could penalize stablecoin issuers that don’t adhere to the new regulations, akin to the European Union’s approach with its Markets in Crypto-Assets (MiCA) regulations. Rausis stated that controlling stablecoins is equivalent to controlling financial transactions, which could lead to them freezing funds at any time. Essentially, this situation mirrors the capabilities that a CBDC would offer.
The GENIUS Act, officially named the Guiding and Establishing National Innovation for US Stablecoins Act, was introduced by Tennessee Senator Bill Hagerty. This new legislation aims to lay down guidelines for stablecoins like Tether’s USDt and Circle’s USDC. Recently updated, the bill now includes stricter measures related to Anti-Money Laundering and reserve requirements, which are aimed at giving US-based stablecoin issuers an advantage over international competitors.
During the recent White House Crypto Summit, US Treasury Secretary Scott Bessent highlighted that the country aims to utilize stablecoins to maintain the US dollar’s dominant role in global payments. The implication is that with over $120 billion in US government debt held by stablecoin issuers, the US government is less likely to relinquish its grip.
In summary, the evolving landscape of stablecoin regulation is proving to be a mixed bag. On one hand, the GENIUS Act offers a framework to protect consumers, but critics argue that it may tighten government control over a sector that initially sought to revolutionize finance through decentralization.
Tags: GENIUS Act, stablecoin regulation, CBDC, cryptocurrency, US Treasury, financial transactions, decentralized trading.
What is the GENIUS stablecoin bill?
The GENIUS stablecoin bill is a proposed legislation that aims to create a type of digital currency backed by government assets. It is designed to provide stability and trust in digital transactions.
Why do some people call it a “CBDC trojan horse”?
Some critics believe the bill is a way for governments to introduce Central Bank Digital Currencies (CBDCs) without people noticing. They worry it could lead to more government control over money.
How does this affect the DeFi space?
The bill may impact decentralized finance (DeFi) by limiting how people use their cryptocurrencies. If the government adds more regulations, it could stifle innovation and reduce the freedom that DeFi offers.
What are the main concerns about the GENIUS stablecoin?
People are concerned that it could lead to a reduction in privacy in financial transactions. Additionally, there are worries about potential surveillance and limits on how people spend their money.
What should I do if I’m worried about this bill?
Stay informed about the news and discussions regarding the bill. You can express your opinion to local representatives or participate in community discussions about its potential impact on finances and freedom.