Regulating Stablecoins Will Take a Genius Act, and This Isn't It
"The new cryptocurrency legislation would introduce needless risk to both the financial system and consumers.
If this session of Congress is remembered for anything, it may be for its poorly named its legislation. First there was the One Big Beautiful Bill, which wasnt. Now there is the Genius Act, which isnt.
The Guiding and Establishing National Innovation for US Stablecoins Act, which Congress passed this week, would regulate stablecoins and effectively transform them from a security to a means of payment. While there is a need for some regulation, as some retailers are considering issuing their own stablecoins, mainstreaming the cryptocurrency is hardly a genius move.
The bill would introduce a tremendous amount of risk to the financial system and to consumers. And for what purpose? The US already has a means of payment its called the dollar and it works pretty well.
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Cryptocoin issuers are very similar to the banks of the 1830s, which also issued their own currencies and were regulated by the states. In a similar spirit, under the Genius Act, companies that issue less than $10 billion worth of coins would also be regulated by the states, while the Federal Reserve would regulate bigger issuers.
The thing about the 1830s, from a financial standpoint, is that they were very chaotic. Constant oversight was necessary, because any hint of currency devaluation created bank runs and failures. States had different standards, and several underregulated their local banks creating a lack of confidence in the system.
https://www.bloomberg.com/opinion/articles/2025-07-18/regulating-stablecoins-will-take-a-genius-act-and-this-isn-t-it?srnd=homepage-americas