Oppose Cryptocurrency GENIUS Act - Senate Vote THIS WEEK

The so-called GENIUS Act, S. 1582, or “Guiding and Establishing National Innovation for U.S. Stablecoins Act” aims to establish a regulatory framework for payment stablecoins, a type of cryptocurrency. While there is a need for sturdy cryptocurrency regulation — multiple U.S. banks collapsed in 2023 due to cryptocurrency deposits and bank runs — this bill misses the mark on sufficient safeguards and will instead endanger our traditional banking system and enable corruption.

• This bill will fold cryptocurrencies directly into our traditional banking system. Previously when cryptocurrency markets crashed, they were mostly separate from the financial system, but under the GENIUS Act, in the case of a market crash, banks that become insolvent would be required to pay claims to all stablecoin owners first, and then to other bank customers. Banks would effectively use money from traditional savings and checking accounts to pay their crypto investors’ losses.

• Senator Josh Hawley (R-MO) called the bill a “huge giveaway to Big Tech” as it would allow tech companies such as Meta and Twitter/X to create their own digital currencies and compete with the dollar. It would also incentivize them to collect more private financial data from their users.

• The bill also does not include provisions that would curb the Trump family’s corrupt use of cryptocurrencies to accept bribes from foreign countries and investors. Trump recently launched their own cryptocurrency company with plans to sell stablecoins.

Experts warn that the GENIUS Act could expose the American financial system to dangerous market fallouts, similar to the subprime housing collapse of 2008. Demand your representatives oppose this risky bill that will endanger the strength and solvency of our banking system.