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Crypto’s GENIUS Idea For the Next Financial Crisis
The industry that championed decentralization just begged for permission, and that’s the problem
Amidst the chaotic news cycle of Jeffrey Epstein, tariffs, and starvation in Gaza, it’s understandable if you missed one of the most important legislative moves of President Donald Trump’s second term — the GENIUS Act. It stands for “Guiding and Establishing National Innovation for U.S. Stablecoins.”
The act provides a framework for modernizing our archaic payments system by allowing practically anyone to issue a stand-alone stablecoin. There are various requirements to ensure each coin is backed one-to-one with U.S. dollar assets (cash or cash equivalents like U.S. Treasuries), in addition to periodically publishing and auditing the composition of those reserves.
But while there is a definite need for faster and lower cost payments, not all “innovation” is good. Especially when used as a veneer for what are really tried, tested, and failed financial solutions from the 19th century and early 2000s.
I was highly critical of how the Biden administration chose (not) to regulate the crypto industry. How his henchman, Gary Gensler, at the U.S. Securities and Exchange Commission issued nonstop enforcement actions, but little…
