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US congresswoman Marjorie Taylor Greene mentioned that the GENIUS stablecoin legislation establishes a “backdoor” for the authorities to effectively produce a central bank digital currency, disguised as privately issued crypto tokens.
The legislator stated that regulated stablecoins possess “operational surveillance functions,” which render them indistinguishable from CBDCs. In a different social media update, she remarked:
“This bill governs stablecoins and facilitates the backdoor central bank digital currency. The Federal Reserve has been planning a CBDC for years, and this will pave the way for a transition to a cashless society and force you into digital currency that can be weaponized against you by an oppressive government controlling your purchasing ability.”
Rep. Greene’s remarks reflect a growing apprehension among individuals within the Bitcoin and crypto community regarding regulated stablecoins and the risk of these privately-issued tokens becoming subjugated by the state.
Related: GENIUS Act heading to Trump’s desk: Here’s what will change
The Bitcoin and crypto communities express similar worries
“The Genius Act compels stablecoins into CBDC compliance and control; functionally equivalent to a CBDC, but without the alarming label,” Bitcoin supporter Justin Bechler commented in a July 19 X post.
Saifedean Ammous, author of “The Bitcoin Standard,” contended that the US dollar, in any variation, essentially represents a central bank digital currency that is currently supervised by the state and becoming more digital.
“Governments comprehend that if they take control of stablecoins, they hold power over financial transactions,” Jean Rausis, co-founder of the Smardex decentralized trading platform, stated.
The executive noted that the capability to freeze or reverse transactions and oversee centrally-managed stablecoins makes them indistinguishable from a CBDC.
The GENIUS bill was revised in March to incorporate stricter anti-money-laundering regulations, sanctions adherence, and know-your-customer obligations, necessitating financial oversight and transaction censorship capabilities.
In October 2024, Curve Finance founder Dr. Michael Egorov told Cointelegraph that centralized stablecoins pose the danger of regulatory capture, including the government seizing the underlying fiat assets retained in bank accounts or custodial institutions supporting the digital tokens.
Magazine: Crypto aimed to topple banks, now it’s becoming them in stablecoin battle
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