Congresswoman Greene Warns GENIUS Act Could Enable CBDC Surveillance

US Congresswoman Marjorie Taylor Greene has expressed strong opposition to the newly introduced GENIUS Act, asserting that it could serve as a backdoor for implementing a state-backed Central Bank Digital Currency (CBDC) in the US. Greene argues that despite being presented as a regulatory framework for stablecoins, the bill contains features that are characteristic of a CBDC, including extensive control and surveillance mechanisms.

Greene's concerns stem from the bill's provisions that would enable sweeping financial surveillance and control, similar to what is seen in state-run digital currencies. The GENIUS Act aims to provide legal clarity for the issuance and operation of stablecoins in the US. However, critics like Greene fear that it could lead to invasive monitoring of financial transactions and erode the principles of decentralization that underpin digital currencies.

Greene's warnings have resonated within the cryptocurrency community, with several leaders and experts echoing her fears. Economist and Bitcoin maximalist Saifedean Ammous, author of The Bitcoin Standard, has argued that the US dollar is already a digital currency in many ways, monitored and tracked by the government. Jean Rausis, co-founder of Smardex, has also expressed concerns, stating that controlling stablecoins means controlling financial transactions, and centralized systems allow authorities to freeze assets, reverse payments, and track spending, making stablecoins nearly identical to CBDCs.

The GENIUS Act has undergone multiple revisions since its initial draft, with the most recent major revision occurring in March 2025. These changes have introduced more stringent anti-money laundering (AML) requirements, "Know Your Customer" (KYC) criteria, and sanctions compliance requirements. While these measures are justified as necessary shields against criminal use, detractors argue that they amount to invasive financial surveillance. Stablecoin issuers would be required to collect and share customer information, track all transactions, and sometimes suspend payments if regulators deem it necessary, without providing reasons for the actions.

Critics fear that these provisions could lead to a scenario where issuers are required to keep funds in regulated banks and undergo draconian AML checks, potentially resulting in the government freezing or confiscating the funds. This concern is not limited to the US, as CBDCs are being actively rolled out in other countries. US crypto proponents worry that the GENIUS Act, while pretending to support innovation, could lead the country down a similar path of extensive financial surveillance and control.

The debate over the GENIUS Act highlights the broader concerns surrounding CBDCs. Many fear that CBDCs could be used by governments to monitor and control citizens' financial activities, potentially infringing on privacy and individual freedoms. The introduction of CBDCs could also lead to the erosion of traditional banking systems, as digital currencies issued by central banks could become the primary means of transaction. The outcome of this debate will shape the future of digital finance and the role of central banks in the global economy.