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![TheCoinCritic Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::42747026.png) TheCoinCritic⚙️🇺🇸 [@TheCoinCritic](/creator/twitter/TheCoinCritic) on x 1244 followers
Created: 2025-07-23 17:43:17 UTC

🚨 GENIUS Act Alert for PulseChain Users 🚨

Some are now claiming their “loan protocol” isn’t a stablecoin system.

But here’s the truth:

If your protocol:
1️⃣ Issues a token pegged to the dollar
2️⃣ Lets users mint it by locking crypto
3️⃣ Offers redemption to get your collateral back

…then it’s a GENIUS Act digital asset instrument — even if you never call it a stablecoin.

⚠️ The US law cares about function, not your branding.

Calling it a “loan” doesn’t make it compliant.

🎭 This isn’t just spin — it’s dangerous misinformation that could get users flagged or stuck when enforcement comes.

✅ How to avoid the trap:
– Know what you hold
– Avoid redemption at par
– Avoid fiat pegs
– Avoid centralized frontends
– Use volatile crypto as-is, or redesign the system. For example the (PETH/wPLS) has an interesting ‘stable’ chart.

DeFi means decentralized, not deniable.

Don’t fall for post-hoc marketing.

Stay trustless. Stay self-custodied.
#PulseChain #HEX #DeFi #GENIUSAct #CryptoRegul


XXX engagements

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**Related Topics**
[mint](/topic/mint)
[money](/topic/money)
[token](/topic/token)
[coins stablecoin](/topic/coins-stablecoin)
[protocol](/topic/protocol)
[pulsechain](/topic/pulsechain)
[coins layer 1](/topic/coins-layer-1)
[coins made in usa](/topic/coins-made-in-usa)

[Post Link](https://x.com/TheCoinCritic/status/1948076464773198089)