The US Congress has passed the controversial Genius Act, introducing significant changes to the US financial system, particularly integrating cryptocurrencies and stablecoins into the official financial ecosystem. While some view the law as a modernization and development opportunity, experts warn of risks including financial system destabilization, potential fraud, and regulatory uncertainties. Criticism focuses on the increased power of private companies to issue their own money, reminiscent of the ‘wild west’ era in US financial history. The Trump administration and crypto community celebrate the law, whereas economists and independent experts highlight the dangers and lack of serious political debate. The key question remains whether the state will guarantee the stability of stablecoins and how this will impact the US dollar and the global economy.
Political Perspectives:
Left: The left-leaning narratives emphasize the risks and dangers of the Genius Act, highlighting how it could destabilize the financial system, increase inequality by empowering wealthy crypto elites, and potentially harm ordinary Americans. They criticize the lack of serious political debate and warn against the plutocratic nature of the law, viewing it as benefiting the rich at the expense of the poor.
Center: Center-leaning reports tend to present a balanced view, acknowledging the potential for modernization and innovation in the US financial system through the integration of cryptocurrencies and stablecoins, while also noting the significant risks and uncertainties involved. They highlight the historical parallels with past financial instability and call for cautious regulation and oversight.
Right: Right-leaning perspectives often focus on the Genius Act as a positive step towards financial modernization and innovation, supporting the integration of crypto technologies into the mainstream financial system. They emphasize the potential economic growth and flexibility benefits, sometimes downplaying the risks or framing them as manageable challenges. The Trump administration’s support is highlighted as a move towards a modern financial future.
