Sen. Marjorie Taylor Greene (R-Ga.) has renewed her opposition to the Government-Enhanced National Infrastructure for Unified Stability (GENIUS) Act, a significant piece of cryptocurrency legislation that was signed into law during Donald Trump’s second presidential term.
This legislation, enacted on July 18, establishes a federal regulatory framework for stablecoins, representing the first major crypto-specific law to be passed in the United States.
Greene’s Opposition to the GENIUS Act
The GENIUS Act sets forth standards for reserves, transparency, and oversight for entities that issue stablecoins. Stablecoins are digital assets designed to maintain a consistent value, typically by being pegged to traditional currencies like the U.S. dollar or commodities such as gold.
President Trump had commended Sen. Bill Hagerty (R-Tenn.) for sponsoring the bill. The legislation received bipartisan support in the Senate, passing on June 17 with a vote of 68–30, and subsequently cleared the House on July 17.
However, Rep. Greene was among a minority of lawmakers who voted against the bill.
At the time of the vote, Greene publicly explained her stance on the social media platform X, expressing concerns that the legislation could inadvertently pave the way for a central bank digital currency (CBDC).
“Remember when Canada froze the truckers’ bank accounts and crypto when they protested against vaccine mandates? Congress is passing a bill today (GENIUS Act) that opens the back door to a CBDC... Why are we passing bills to lay the groundwork for a CBDC that can be used against us in the future by another authoritarian regime?... I’m voting no!”
Although the GENIUS Act does not explicitly authorize a CBDC, some critics contend that certain provisions within the law could indirectly facilitate its implementation.
The Act establishes a federal system for licensing and overseeing stablecoin issuers. It grants authority to the U.S. Treasury and the Federal Reserve to supervise how reserves are managed, conduct compliance audits, and approve new issuers.
In particular, the Act permits the Federal Reserve to collaborate with payment service providers and to develop technical standards for digital asset transactions to ensure interoperability.
Furthermore, the Act empowers federal regulators to suspend, restrict, or modify the operations of stablecoins if systemic risk is identified. Opponents interpret this as a potential mechanism for establishing centralized control over transactions.
Renewed Criticism Regarding Potential CBDC Loophole
On December 9, Greene voiced her concerns again, asserting that House Speaker Mike Johnson had not upheld a commitment to include a ban on CBDCs, a proposal initially put forth by Rep. Tom Emmer (R-Minn.), within the National Defense Authorization Act (NDAA).
“Back in July, I voted no on the GENIUS Act because it contained a back door to a CBDC... Johnson promised conservatives he would put Tom Emmer’s bill in the NDAA... As usual, he didn’t keep his promise,” Greene stated on X.
“I support crypto, but I will never support giving the government the ability to turn off your ability to have full control of your money and to buy and sell.”