GENIUS Act Prohibits Federal Reserve from Issuing CBDC, Enhances Congressional Oversight on Stablecoins

The GENIUS Act has been introduced to prevent the Federal Reserve from creating a Central Bank Digital Currency (CBDC), while simultaneously granting Congress greater authority to monitor stablecoins. According to NS3.AI, critics of the legislation argue that it effectively allows for a level of control and surveillance comparable to that of a CBDC, despite stablecoins being issued by private entities. Existing regulations, such as the Bank Secrecy Act, already enable substantial government tracking of financial transactions. The GENIUS Act aims to formalize the oversight of digital currencies under the jurisdiction of Congress.