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Regulating Stablecoins Will Take a Genius Act, and This Isn’t It - BLOOMBERG
The new cryptocurrency legislation would introduce needless risk to both the financial system and consumers.
By Allison Schrager
Allison Schrager is a Bloomberg Opinion columnist covering economics. A senior fellow at the Manhattan Institute, she is author of “An Economist Walks Into a Brothel: And Other Unexpected Places to Understand Risk.”
If this session of Congress is remembered for anything, it may be for its poorly named its legislation. First there was the One Big Beautiful Bill, which wasn’t. Now there is the Genius Act, which isn’t.
The Guiding and Establishing National Innovation for US Stablecoins Act, which Congress passed this week, would regulate stablecoins and effectively transform them from a security to a means of payment. While there is a need for some regulation, as some retailers are considering issuing their own stablecoins, mainstreaming the cryptocurrency is hardly a genius move.
