Concerns Raised Over Privacy in U.S. Stablecoin Legislation

According to Odaily, Jennifer J. Schulp, Director of Financial Regulation Studies at the Cato Institute, has expressed concerns regarding the stablecoin legislation currently under review by the U.S. Congress. The proposed laws, including the GENIUS Act and the STABLE Act, aim to combat illegal financial activities but may inadvertently lead to excessive financial surveillance of users. Schulp warns that if stablecoin issuers are subjected to the Bank Secrecy Act (BSA) regulations, it could result in comprehensive tracking of user transactions, thereby eroding individual privacy rights. She urges lawmakers to balance anti-money laundering measures with innovation and privacy protection, ensuring that stablecoins enhance payment efficiency without becoming tools for government surveillance.