Article with AI Analysis:
Date: 21 July 2025
Source: Cointelegraph
Introduction
A storm is brewing in Washington over a law that was meant to bring stability to crypto. Instead, many fear it could be the first step toward a government-controlled digital currency. The GENIUS Act, recently signed by President Trump, has sparked strong reactions, especially from those who value financial freedom and privacy.
A Stablecoin Law with a CBDC Core?
Congresswoman Marjorie Taylor Greene didn't hold back. She called the GENIUS Act a "backdoor" for the Federal Reserve to launch a central bank digital currency (CBDC), masked as a private stablecoin. In a post on social media, Greene warned:
"The Federal Reserve has been planning a CBDC for years, and this will open the door to move you to a cashless society… that can be weaponized against you.”
At the heart of her concern is the nature of regulated stablecoins. These digital dollars, backed by real money in banks, come with surveillance features like transaction tracking, user identification (KYC), and even the power to freeze funds. For critics, this blurs the line between decentralised innovation and centralised control.
Bitcoin Advocates Sound the Alarm
The crypto community is no stranger to regulation debates. But this bill, advocates say, feels different.
“Functionally identical to a CBDC, without the scary name,” wrote Bitcoin advocate Justin Bechler.Author Saifedean Ammous added: “The US dollar, in any form, is already a digital currency watched by the state.”
It’s not just about privacy. The bill’s updated language now includes strict Anti-Money Laundering rules, sanctions enforcement, and full Know Your Customer requirements. Critics argue that this gives regulators the ability to watch, censor, or reverse transactions much like a true CBDC.
Centralisation Risks and the Bigger Picture
Dr. Michael Egorov, founder of Curve Finance, warned last year about the risks of centralised stablecoins being seized or controlled through their bank-held reserves. Jean Rausis of Smardex echoed the worry: whoever controls stablecoins, controls digital money.
This isn’t just technical it’s personal. What starts as regulation can, critics argue, become control. And what begins as a stablecoin law may reshape how Americans save, spend, and live.
AI-Powered Sentiment Analysis
Our AI analysis of this article revealed:
Sentiment Score: 0.84 – The tone is concerned, yet measured, expressing unease without sensationalism.
Financial Sentiment: 0.94 – Financial relevance is high, with strong implications for crypto markets and regulations.
Polarity Score: 0.009 – A very neutral emotional tone; avoids extremes or one-sided bias.
Subjectivity Score: 0.265 – Mostly factual with minimal speculation or opinion.
These scores suggest that the article is analytically rich, informative, and well-grounded, while maintaining emotional restraint and objectivity a balance that aligns well with Google's EEAT and helps readers stay informed without being overwhelmed.
Read More
Read the full article on: https://cointelegraph.com/news/us-lawmaker-alarm-genius-bill-cbdc-trojan-horse
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Disclaimer
This article was generated using AI and reviewed for accuracy. The information presented is for educational purposes only and should not be construed as financial advice. Always consult with a professional before making investment decisions.