The GENIUS Act, the first US crypto law, regulates dollar-backed stablecoins. Hailed by some as a step forward, it worries others, who see it as a potential drift towards a state-controlled digital currency.
Revolution or Trojan horse? Barely adopted, the GENIUS Act is already divisive
The GENIUS Act has just made history as the first crypto law passed by the US government. Signed by Donald Trump, this legislation legalizes the use of dollar-backed stablecoins, providing a new regulatory framework for a rapidly expanding sector.
With this law and the many institutions and companies interested in creating or using stablecoins, they seem to be changing scale. But behind the enthusiasm, some are wondering: does this massive legitimization benefit the crypto ecosystem… or does it serve other strategic interests, particularly around US debt?
As we explained in an article published when the bill was announced, even taking into account the adoption of the Anti-CBDC Surveillance State Act passed on the same day, the GENIUS Act could allow the creation of central bank digital currencies (CBDCs).
It was Republican Representative Marjorie Taylor Greene who sounded the alarm and initiated the initial rejection of the bill earlier this week. In response to its adoption, she issued another warning in a post on X:
This week Congress passed crypto legislation.
The American people hardly have any idea what it is, what it means, and what passed.
1. GENUIS ACT – I voted NO. It passed the Senate and the House and will be signed into law today.
This bill regulates stablecoins and provides for…— Rep. Marjorie Taylor Greene🇺🇸 (@RepMTG) July 18, 2025
GENIUS ACT – I voted NO. […] This bill regulates stablecoins and paves the way for a hidden central bank digital currency. The Federal Reserve has been preparing an MNBC for years, and this bill opens the door to a cashless society based on a digital currency that can be used as a weapon against you by an authoritarian government, controlling your ability to buy and sell. Do you really trust your government never to do that? I don’t.
An MNBC is a currency issued and distributed directly by a central bank. In China, for example, this type of system is already in place and is part of the social credit system, allowing the government to block transactions by citizens with a poor credit rating.
The GENIUS Act could, in theory, give the Federal Reserve (FED), or even the US government, the ability to hijack the use of stablecoins, or even create their own token. This could then be used for political control, similar to the Chinese model.
Where are MNBCs in Europe?
While the United States is betting on private stablecoins, which have already been adopted by the market and are worth more than $220 billion, the European Union has chosen to slow down innovation in the sector, notably with the MiCA regulation, in order to ultimately finance a dystopian-sounding MNBC project.
According to a PwC study, the rollout of the digital euro could cost European banks up to €18 billion, a colossal amount, especially since the real usefulness of this currency, dubbed “Cash+,” remains to be proven. Only a handful of officials within the ECB and the EU have really defended the principle, and the creation of this project has never been put to a vote.
