The new GENIUS Act in the United States is strongly opposed due to concerns it may transform into a centrally controlled Central Bank Digital Currency (CBDC).
The GENIUS Act is promoted as a legal framework for stablecoins but many experts and politicians warn that this is a stepping stone towards extensive financial surveillance, undermining privacy and financial freedom in the cryptocurrency community.
MAIN CONTENT
The GENIUS Act is opposed for its potential to turn stablecoins into centrally controlled CBDCs.
The law enhances AML, KYC requirements, raising concerns about invasive financial surveillance.
The cryptocurrency community warns of the risk of losing privacy and transaction freedom if the law is passed.
What is the GENIUS Act and why is it controversial?
The GENIUS Act provides a framework for regulating stablecoins, but according to Congressman Marjorie Taylor Greene's warning, this law effectively allows the state to control cryptocurrency like CBDCs.
Greene emphasized: “This is a mandate to control stablecoins but actually opens the backdoor for centralized CBDCs.” The proposed law clearly indicates the collection, monitoring, and control of all transactions on stablecoins, raising concerns about privacy and excessive surveillance.
What are the risks of financial surveillance and privacy invasion?
The GENIUS Act requires stablecoin issuers to fully comply with AML, KYC, and sanctions orders, allowing authorities to intervene in transactions and suspend payments without disclosing reasons.
Expert Jean Rausis, co-founder of Smardex, warns: “Controlling stablecoins also means controlling all financial transactions, similar to the mechanism of CBDCs.”
“The forced collection of personal data and transaction control reflects a trend towards comprehensive financial surveillance, approaching the model of state digital currency.”
Marjorie Taylor Greene, U.S. Congressman, 2025
How is the cryptocurrency community and experts reacting?
Many industry leaders and experts agree with Greene's assessment, fearing that this legislation undermines decentralization—the core of cryptocurrency.
Saifedean Ammous, an economist and author of The Bitcoin Standard, stated: “The current USD has effectively operated as a government digital token, all under tight supervision. The GENIUS Act further enhances this control.”
“Any effort to control stablecoins is contrary to the principles of decentralization and privacy that cryptocurrencies strive for.”
Saifedean Ammous, Author and Economist, 2025
How does the GENIUS Act compare to current financial oversight standards?
GENIUS Act Criteria CBDC Regulations in China and the EU Current Standards with Unregulated Stablecoins Transaction Oversight Mandatory collection, monitoring of all transactions Tight supervision, centralized control Less personal oversight, prioritizing decentralization AML/KYC requirements Mandatory regulations, strong anti-money laundering tools Similar strict regulations Not mandatory or much lighter Privacy Disruptive, can suspend payments on command Comprehensive control, privacy restrictions High protection of privacy and freedom of transaction
How is the GENIUS Act related to the future of cryptocurrency in the United States?
The GENIUS Act is seen as the first step towards a U.S. CBDC under the guise of a stablecoin regulatory framework, sparking backlash from the crypto community due to concerns about privacy and financial freedom.
Some experts warn that this legislation could lead the U.S. down a path of surveillance similar to that of China or the EU if not properly adjusted.
Frequently Asked Questions
Does the GENIUS Act turn stablecoins into CBDCs?
The GENIUS Act provides a legal framework with many elements of centralized control, seen as laying the groundwork for a high-control state CBDC.
Why does the cryptocurrency community oppose the GENIUS Act?
The law enhances oversight, transaction data collection, threatening privacy and the decentralization principles of cryptocurrency.
How does the GENIUS Act affect financial privacy?
Mandatory KYC/AML requirements and allowing payment suspensions could lead to extensive financial surveillance, reducing privacy.
How have other countries adopted CBDC?
China and the European Union are implementing CBDCs with similar strict controls as those feared in the GENIUS Act.
How does the GENIUS Act affect innovation in cryptocurrency?
Many fear that the law could stifle innovation, threatening the free and decentralized development of the cryptocurrency industry in the United States.
Source: https://tintucbitcoin.com/genius-bill-cua-ngo-cbdc-my/
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