US Lawmaker Raises Concerns Over GENIUS Bill's Potential Impact on CBDCs

Congresswoman Greene's Warning

United States congresswoman Marjorie Taylor Greene recently spoke out against the GENIUS stablecoin bill, claiming that it could serve as a "backdoor" for the government to introduce a central bank digital currency (CBDC) disguised as privately issued crypto tokens. She argued that regulated stablecoins possess surveillance capabilities that blur the lines between privately issued tokens and CBDCs.

Growing Opposition in the Crypto Community

Greene's remarks align with a growing sentiment within the Bitcoin and crypto communities, where concerns are mounting over the potential for regulated stablecoins to be co-opted by governmental control. Bitcoin advocate Justin Bechler highlighted the similarities between stablecoins forced into CBDC compliance by the GENIUS Act and actual CBDCs.

Expert Insights on Stablecoin Regulation

Saifedean Ammous, author of "The Bitcoin Standard," emphasized that the US dollar, in any form, essentially operates as a CBDC already monitored by the state. Jean Rausis, co-founder of the Smardex decentralized trading platform, noted that the control of stablecoins grants governments power over financial transactions, leading to concerns about surveillance and censorship capabilities. The GENIUS bill, which was updated in March to include stricter regulatory measures, such as anti-money laundering provisions and know-your-customer requirements, has raised red flags within the crypto community. Experts caution that the increased regulation could pave the way for government control over stablecoins, potentially blurring the lines between private and state-controlled digital currencies.