U.S. lawmakers see the Genius Act as a CBDC Trojan horse.

U.S. Congresswoman Marjorie Taylor Greene has explicitly warned about the newly introduced Genius Act, expressing concern that it would promote a forced agenda for the central bank digital currency (CBDC) supported by the United States. Green said that although it is regarded as a stable regulatory framework, the bill includes features and controls that you would find in a CBDC. "The bill stipulates a stable stability and provides for a backdoor central bank digital currency," Green wrote on X. The "Genius Act" requires clarity in the laws surrounding the issuance of stablecoins in the United States and their operation. However, Green and others are concerned that, under the hood, it could effectively enable financial surveillance and control like a central bank digital currency. Industry Voice Alert Privacy Risk In the broader cryptocurrency networks community, Green's criticisms have received intense support. Her concerns are not unheard, as several other leaders and industry experts have expressed similar fears, arguing that the proposed Genius Act threatens to impact the fundamental spirit of decentralization in Digital Money. Saifedean Ammous, the economist and Bitcoin maximalist who authored "The Bitcoin Standard," stated in a recent podcast that the dollar has already become a form of digital money in many ways. He believes that whether in physical form or through applications, the dollar serves as a digital token of the state, monitored and tracked by the government. Jean Rausis, the co-founder of Smardex, stated that the government understands that controlling Stablecoins means controlling financial transactions. He added that with centralized systems, authorities can freeze assets, reverse payments, and track spending, making stable stablecoins almost identical to CBDCs. This sentiment reflects a common skepticism within cryptocurrency regarding any regulatory framework that would place stablecoins under centralized control. Privacy and financial autonomy are the beginning of the bridge. For many of these individuals, the concepts of privacy and financial autonomy are simply non-negotiable, and any legislation that threatens to interfere with these principles is completely unacceptable. Genius Act raises awareness about financial surveillance Since its initial release, the "Genius Law" has undergone multiple revisions, with the latest significant amendment being in March 2025. These developments introduced stricter AML obligations, "KYC" requirements, and sanctions compliance requirements. While they are seen as necessary shields against criminal abuse, critics argue that they constitute invasive financial surveillance. Stablecoin issuers will be required to collect and share customer information and track all transactions; if regulators inform them, they may need to pause payments without providing information about why the transactions are occurring. For many in the cryptocurrency space, this is not just an inch of authoritarian repression, but a terrifying mile. All of this is fine until 10 years later, when the issuer must keep some of that money in a regulated bank and undergo strict AML checks, while the government can freeze or confiscate the funds just like any other bank account. This issue is not limited to the United States. CBDC is being actively launched in other countries, such as China and the European Union. Supporters of cryptocurrency in the U.S. are concerned that the Genius Act pretends to support innovation, which may lead the U.S. down the same path, just more discreetly.