The GENIUS stablecoin bill is viewed as a covert approach to implementing central bank digital currency (CBDC) controls through privatization, according to Jean Rausis, co-founder of the Smardex decentralized trading platform. Rausis argues that the U.S. government may penalize stablecoin issuers that do not align with new regulatory measures akin to the EU's MiCA regulations. He emphasizes that governmental control of stablecoins equates to control over financial transactions, allowing the freezing of funds similarly to what a CBDC would permit. The bill proposes stringent requirements, including Anti-Money Laundering measures and liquidity provisions, aimed at ensuring U.S.-based stablecoin issuers maintain dominance over their offshore competitors. Furthermore, major U.S. stablecoin issuers are significant holders of U.S. government debt, underscoring the impact of regulatory frameworks on the financial ecosystem and interest in protecting the dollar's status as the global reserve currency.

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