GENIUS Act bars CBDC but could expand government surveillance of stablecoins

The GENIUS Act prevents the Federal Reserve from issuing a CBDC directly to individuals or through a third party, effectively closing the door on a government-issued digital dollar. Stablecoins, though digital, were marketed as a private form of currency, in contrast to a government-issued digital dollar, but critics say the law still opens pathways for greater state oversight.

Aaron Day, a fellow at the Brownstone Institute and a staunch critic of the crypto industry, argued the GENIUS Act facilitates increased government surveillance despite its ban. He said stablecoins and CBDCs are essentially the same, the only difference being private issuance versus central bank issuance.

"The issuance by the Federal Reserve is not actually the part of this that people are concerned about. The Federal Reserve is a private organization that is a collection of banks.

United States

genius act, cbdc, stablecoins, federal reserve, digital dollar, government surveillance, aaron day, brownstone institute, private issuance, central bank