GENIUS Act Challenges Dollar Monopoly Amid Crypto and Sanctions Shifts

The recent debate around the GENIUS Act has sparked a wave of misconceptions, according to opinion piece by Zachary Kelman, published on Cointelegraph. Contrary to popular belief, the act does not eliminate all government control over money, make Bitcoin tax-free, or “legalize” decentralized finance (DeFi). Nor is it a covert strategy to advance a central bank digital currency (CBDC), particularly given the anti-CBDC provisions that were enacted alongside it [1].

What the GENIUS Act aims to do is to challenge the long-standing dominance of a few major banks and regulators over global dollar clearing. By disrupting this monopoly, the act makes it significantly harder—if not impossible—for these entities to control who has access to clean dollars and how that money is used. This shift could also make it more difficult for financial institutions to enforce political agendas under the guise of compliance [1].

Kelman argues that the act is a critical step in preventing a shift toward financial authoritarianism, which has been increasingly evident in the evolution of U.S. financial policy. From the Bank Secrecy Act of 1973 to the USA PATRIOT Act, the U.S. financial system has expanded into a complex surveillance regime. This trend escalated during the Obama administration with Operation Chokepoint, where banks were pressured to cut ties with legally operating but politically disfavored businesses [1].

The crypto industry found itself under similar scrutiny, with critics like Larry Fink envisioning a global digital currency that could eliminate money laundering. While this may sound idealistic, it raises concerns about the erosion of financial privacy and freedom. The idea of a system where every transaction is understood and controlled is not abstract; it is already embedded in U.S. financial policy [1].

However, the crypto industry has pushed back. Intensified lobbying efforts, legal victories against former SEC Chair Gary Gensler, and the rise of USD-denominated stablecoins have all contributed to the industry’s resilience. Stablecoins, in particular, have disrupted global financial strategies, even forcing China and Russia to pivot from crypto to state-backed alternatives. At the same time, despite rising U.S. Treasury yields, crypto adoption has continued to grow [1].

A pivotal moment came in response to Russia’s 2022 invasion of Ukraine, which exposed the limits of dollar-based sanctions. The incident underscored the need to move away from centralized financial control. The GENIUS Act, in this context, marks a significant blow to American financial imperialism. It shifts the power from traditional correspondent banks to stablecoins, helping to address the interest rate gap and slowing the process of de-dollarization [1].

Notably, Senator Elizabeth Warren’s push for increased stablecoin surveillance was met with resistance from fellow Democrats like Kirstin Gillibrand, who warned that such measures could stifle the industry’s growth. This opposition highlights a strategic interest in maintaining the dollar’s global dominance rather than a moral stance on privacy or freedom [1].

Kelman concludes that while the GENIUS Act is not the fulfillment of the “crypto dream,” it may signal the end of the “crypto nightmare”—at least for now. The act expands access to both dollars and crypto, but this progress is conditional. If political tides shift and figures like Larry Fink alter their approach, the balance could tip again [1].

Source: [1] You’re wrong about the GENIUS Act (https://cointelegraph.com/news/wrong-genius-act?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)