United States congresswoman Marjorie Taylor Greene stated that the GENIUS stablecoin invoice creates a “backdoor” for the federal government to successfully create a central financial institution digital foreign money, veiled as privately issued crypto tokens.
The lawmaker stated that regulated stablecoins function “purposeful surveillance capabilities,” which make them indistinguishable from CBDCs. In a separate social media submit, she added:
“This invoice regulates stablecoins and offers for the backdoor central financial institution digital foreign money. The Federal Reserve has been planning a CBDC for years, and it will open the door to maneuver you to a cashless society and into digital foreign money that may be weaponized towards you by an authoritarian authorities controlling your capacity to purchase and promote.”
Rep. Greene’s feedback echo a rising tide of people within the Bitcoin and crypto communities sounding the alarm on regulated stablecoins and the potential for these privately-issued tokens to turn out to be captured by the state.
Associated: GENIUS Act heads to Trump’s desk: Right here’s what is going to change
The Bitcoin and crypto communities voice the identical issues
“The Genius Act forces stablecoins into CBDC compliance and management; functionally an identical to a CBDC, with out the scary identify,” Bitcoin advocate Justin Bechler wrote in a July 19 X submit.
Saifedean Ammous, writer of “The Bitcoin Customary,” argued that the US greenback, in any kind, is basically a central financial institution digital foreign money that’s already monitored by the state and more and more digital.
“Governments understand that in the event that they management stablecoins, they management monetary transactions,” Jean Rausis, co-founder of the Smardex decentralized buying and selling platform, stated.
The manager added that the power to freeze or rollback transactions and surveil centrally-managed stablecoins makes them indistinguishable from a CBDC.
The GENIUS invoice was amended in March to incorporate stricter anti-money-laundering provisions, sanctions compliance, and know-your-customer necessities, necessitating monetary surveillance and the power to censor transactions.
In October 2024, Curve Finance founder Dr. Michael Egorov advised Cointelegraph that centralized stablecoins carry the danger of regulatory seize, together with authorities seizure of the underlying fiat belongings held in financial institution accounts or custodial establishments backing the digital tokens.
Journal: Crypto wished to overthrow banks, now it’s turning into them in stablecoin struggle
