The regulation of stablecoins in the United States has returned to the center of the debate

The regulation of stablecoins in the United States has returned to the center of the debate with the proposed GENIUS Act, presented by Senator Bill Hagerty.

The regulation of stablecoins in the United States has returned to the center of the debate with the proposed Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, presented by Senator Bill Hagerty.

According to some industry experts, this regulation could represent an attempt at indirect control over central bank digital currency (CBDC), threatening the financial independence promised by criptovalute.

GENIUS Act: more restrictions in regulation for U.S. stablecoins

Jean Rausis, co-founder of the decentralized trading platform Smardex, has raised strong doubts about the real purpose of the GENIUS Act.

According to Rausis, the U.S. government could leverage centralized stablecoins to introduce restrictions similar to those planned for CBDCs, thus ensuring control over digital financial transactions:

“The government realizes that if it controls stablecoins, it also controls financial transactions.”

In other words, by collaborating with emittenti centralizzati di stablecoin, U.S. authorities could block funds at any time. Thus bypassing the need to create a true valuta digitale della banca centrale.

This control would be masked by an apparent decentralization, making stablecoins a less independent alternative than it seems.

According to Rausis, the only way to counter this form of government control is represented by algorithmic stablecoin and synthetic dollars.

That is to say, solutions not supported by centralized reserves that could protect the essence of decentralization in the criptovalute sector.

Presented on February 4th, the GENIUS Act bill was conceived to regulate overcollateralized stablecoins, such as Tether’s USDT and Circle’s USDC.

However, on March 13, the measure was updated to include even stricter regulations regarding anti-money laundering, liquidity, and financial reserves.

Among the added measures are stricter controls on sanctions and new requirements to ensure the stability of stablecoin issuers in the United States.

These provisions could offer an advantage to local companies compared to their offshore competitors. Thus indirectly strengthening the role of the American dollar as the dominant currency in global markets.

Stablecoin and the role of the dollar: a strategy of financial hegemony

During the recent White House Crypto Summit, Treasury Secretary Scott Bessent highlighted the central role of stablecoins in the United States strategy:

“Stablecoins will be used to ensure the hegemony of the dollar in payments and protect its role as a global reserve currency”.

This approach highlights how the U.S. government views stablecoins as a fundamental geopolitical tool.

Centralized issuers rely on USA bank deposits and short-term financial instruments, such as Treasury bills, to support the value of digital tokens.

This dependency increases the demand for both US dollars and government debt securities, further strengthening the American financial system.

Currently, the centralized stablecoin issuers hold over 120 billion dollars in US Treasury bills. Thus ranking as the 18th largest purchaser of public debt of the country.

This data highlights the significant impact that these digital assets can have on the American economy and on long-term monetary policies.

Regulation or masked control?

The proposed GENIUS Act could redefine the landscape of stablecoins in the United States.

However, experts like Jean Rausis warn that this regulation could turn into a real instrument of control. That is, similar to that of CBDCs, effectively limiting the financial freedom of citizens.

While on one hand the new regulations will ensure greater stability and trust in the stablecoin market, on the other hand they could jeopardize the fundamental principles of decentralization.

The battle between regulation and financial freedom has just begun, and the future of stablecoins could prove crucial for the entire cryptocurrency ecosystem.