The GENIUS Act is supposed to bring clarity to the US stablecoin market. But a growing number of crypto policy experts are warning that some of its provisions could do more harm than good — and they’re urging regulators to rethink key sections before the bill becomes law.
The main concern centers on how broadly the rules could reach. Critics argue that certain language in the bill might inadvertently pull DeFi protocols and decentralized stablecoin issuers into a regulatory framework that was really designed for centralized players like Circle and Tether. That could stifle innovation in the very sector that makes crypto different from traditional finance in the first place.
Paradigm and the House Policy Council have both flagged the issue, pushing for narrower definitions that target market integrity without crushing decentralized projects. Whether lawmakers listen could shape the future of DeFi in America for years to come.
Source: AMBCrypto
