This isn't just about crypto. It's about American innovation. It's about your financial future. And frankly, it’s about whether we cede control of the next generation of finance to countries that don't share our values. The Senate’s recently introduced version of the GENIUS Act of 2025 would provide a framework for regulating stablecoins. As currently constructed, it is a strategic catastrophe of enormous proportions. It risks ceding U.S. leadership in the fast-growing crypto sector to foreign actors, and we need to know why that’s acceptable.
Unfair Advantage For Foreign Firms
The core issue? This bill opens up enough of a regulatory loophole to drive a foreign truck through it. Second, it opens the door for foreign stablecoin issuers to compete in the U.S. under rules that may be less strict than those imposed on their American counterparts. Think about it: we’re talking about digital dollars, potentially trillions of dollars, flowing through a system where some players get a head start simply by being located overseas. This isn’t free market capitalism, it’s regulatory arbitrage on steroids!
It's not just about fairness. It's about security and control. Envision a future where a large share of dollar transactions move through stablecoins. These stablecoins would be issued by countries that already have hostile relations with the U.S. That’s not just a financial risk—that is a national security risk.
Biden's Crypto Chaos Creates Opportunity?
The Biden administration’s approach to crypto regulation has been opaque at best…to put it lightly. Some might even call it chaotic. You know that 53% increase in crypto fraud allegations you heard about after President Biden’s executive order on crypto in March 2022? That's not a coincidence. When regulation is unclear, bad actors thrive.
Here's the unexpected connection: this chaos, while deeply concerning, could be an opportunity. An opportunity to learn from past mistakes. A major opportunity exists right now to develop a regulatory framework that encourages innovation and competition while protecting consumers. Unfortunately, the GENIUS Act, as written, misses that historic opportunity. It doubles down on uncertainty by establishing a two-tiered system that provides preferential treatment to foreign entities.
Consumer protection without innovation suppression was definitely the right Trumpian approach. The purported mission of the Trump SEC was protecting consumers and guaranteeing reserve backing. We need to recapture that spirit.
Tether's Shadow Looms Large
Let's talk about Tether. Tether Holdings, specifically. They're a major player in the stablecoin world, and their terms of use…well, let's just say they're less than reassuring. They don’t require Tether to redeem coins in U.S. dollars. They operate outside key transparency obligations.
Under the GENIUS Act, Tether might get a free pass into the U.S. market. That would enable them to play by different rules altogether from American firms. This isn't just unfair. It's reckless.
Five Fixes To Protect US Interests
Here are five concrete steps we need to take to fix this bill and ensure the U.S. remains a leader in the crypto space:
- Equal Rules For Everyone: No exceptions for foreign issuers. Same rules.
- 1:1 Reserve Backing Mandatory: Every stablecoin must be fully backed by reserves.
- Transparency Is Key: Full transparency on reserve holdings. No black boxes.
- Strong Enforcement Powers Needed: Give regulators the teeth they need to act.
- Foster Innovation Domestically: Incentivize US-based innovation.
The House's STABLE Act of 2025, with its emphasis on 1:1 reserve backing and anti-money laundering laws, is a far better approach. It’s a “light-touch, rules-based framework” that lifts up innovation, but keeps consumers safe.
| Feature | STABLE Act (House) | GENIUS Act (Senate) |
|---|---|---|
| Reserve Backing | 1:1 Mandatory | Potentially Looser for Foreign Issuers |
| Foreign Issuers | Same Rules as US | Loopholes & Exemptions |
| Consumer Protection | Strong | Weaker |
Strategic Failure Not An Option
This isn't just about protecting American businesses. It's about protecting you. We look forward to seeing the next generation of financial technology created by companies that are aligned with our values. It’s just as important that these companies be required to obey our laws too.
We cannot continue to allow foreign firms to rip off Americans, as our headline described the practice in a no-holds-barred version of this post’s worldly ways. It’s a strategic failure we can’t afford.
Contact your representatives today. Ask them to oppose the loophole in the GENIUS Act. Remind them that we all want a level playing field for American companies. Let them know that you care about seeing the U.S. become the global leader in responsible crypto innovation.
This isn't just about crypto. It's about our future. Don't let the Senate give it away.
This isn't just about crypto. It's about our future. Don't let the Senate give it away.
