[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  halcyon hodlings [@28halcyon75](/creator/twitter/28halcyon75) on x XXX followers Created: 2025-07-20 04:02:46 UTC Cons of the #GENIUSAct: X. Potentially Insufficient Consumer Safeguards: Some consumer groups argue the protections do not go far enough. Unlike traditional bank deposits, there is no federal deposit insurance (FDIC) for stablecoins, and the mechanisms for dispute resolution are less established, potentially leaving consumers vulnerable in cases of fraud or technical failure. X. Risk of Stifling Competition and Innovation: The stringent reserve requirements and the prohibition on paying interest or yield on stablecoins could create high barriers to entry for smaller startups. Critics argue this may favor large, established financial players and limit the development of new, innovative stablecoin models. X. Concentration of Power and Systemic Risk: The framework could allow large technology and commercial firms to enter the financial services arena without being subject to the same comprehensive regulation as traditional banks. This raises concerns about market concentration, data privacy, and the creation of "shadow banks" that could pose systemic risks. X. Market and Monetary Policy Risks: Some economists and market analysts warn that if the stablecoin market grows significantly, it could impact the U.S. Treasury market. A mass redemption event could force issuers to rapidly sell their Treasury holdings, potentially causing market volatility. Over the long term, a high concentration of Treasury debt with stablecoin issuers could also complicate the Federal Reserve's ability to implement monetary policy. X. Loopholes for Foreign Issuers: Critics point to potential loopholes in the regulation of foreign-issued stablecoins, suggesting that entities like Tether, registered outside the U.S., might still be able to operate in a way that poses risks to American consumers and facilitates illicit finance. XX engagements  **Related Topics** [risk of](/topic/risk-of) [stablecoins](/topic/stablecoins) [fdic](/topic/fdic) [insurance](/topic/insurance) [federal deposit](/topic/federal-deposit) [Post Link](https://x.com/28halcyon75/status/1946782813145211048)
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halcyon hodlings @28halcyon75 on x XXX followers
Created: 2025-07-20 04:02:46 UTC
Cons of the #GENIUSAct:
X. Potentially Insufficient Consumer Safeguards: Some consumer groups argue the protections do not go far enough. Unlike traditional bank deposits, there is no federal deposit insurance (FDIC) for stablecoins, and the mechanisms for dispute resolution are less established, potentially leaving consumers vulnerable in cases of fraud or technical failure.
X. Risk of Stifling Competition and Innovation: The stringent reserve requirements and the prohibition on paying interest or yield on stablecoins could create high barriers to entry for smaller startups. Critics argue this may favor large, established financial players and limit the development of new, innovative stablecoin models.
X. Concentration of Power and Systemic Risk: The framework could allow large technology and commercial firms to enter the financial services arena without being subject to the same comprehensive regulation as traditional banks. This raises concerns about market concentration, data privacy, and the creation of "shadow banks" that could pose systemic risks.
X. Market and Monetary Policy Risks: Some economists and market analysts warn that if the stablecoin market grows significantly, it could impact the U.S. Treasury market. A mass redemption event could force issuers to rapidly sell their Treasury holdings, potentially causing market volatility. Over the long term, a high concentration of Treasury debt with stablecoin issuers could also complicate the Federal Reserve's ability to implement monetary policy.
X. Loopholes for Foreign Issuers: Critics point to potential loopholes in the regulation of foreign-issued stablecoins, suggesting that entities like Tether, registered outside the U.S., might still be able to operate in a way that poses risks to American consumers and facilitates illicit finance.
XX engagements
Related Topics risk of stablecoins fdic insurance federal deposit