• GENIUS Act Overview: Establishes a framework for stablecoins in the U.S., clarifying they are not securities or central bank money.

• Greene’s Opposition: Voted against the bill in July, citing a back door to CBDCs and criticizing House Speaker Mike Johnson for unfulfilled promises.

• Expert Analysis: Attorney Braden Perry notes stablecoins remain distinct from a Federal Reserve-issued CBDC, addressing privacy concerns without enabling surveillance.

Explore the GENIUS Act CBDC controversy: Rep. Greene alleges a loophole, but experts debunk it. Learn why stablecoins differ from CBDCs and implications for crypto regulation. Stay informed on U.S. policy shifts.

What is the GENIUS Act CBDC Controversy?

The GENIUS Act CBDC controversy stems from Rep. Marjorie Taylor Greene’s assertion that the legislation creates a loophole for central bank digital currencies, potentially undermining financial privacy. Introduced to provide a regulatory framework for stablecoins in the United States, the GENIUS Act passed the House in July 2025 with broad Republican support, except for Greene and a few others. However, Greene argues it opens a back door to CBDCs, which she views as tools for government surveillance, echoing broader conservative concerns about digital dollar implementations.

Why Did Rep. Marjorie Taylor Greene Vote Against the GENIUS Act?

Rep. Marjorie Taylor Greene (R-GA) voted against the GENIUS Act in July 2025, one of only 12 Republicans to do so amid over 200 in favor. She publicly stated on social media that the bill contained a “back door to a central bank digital currency (CBDC),” warning it could strip individuals of full control over their finances. Greene emphasized her support for cryptocurrency but drew a firm line against measures enabling government oversight of buying and selling.

Her criticism extended to House Speaker Mike Johnson, whom she accused of breaking promises to conservatives. Greene claimed Johnson assured lawmakers he would incorporate the Anti-CBDC Surveillance State Act into the National Defense Authorization Act (NDAA) to close the alleged loophole. The NDAA, an annual bill authorizing Department of Defense spending and policies, did not include the measure, leading Greene to label Johnson’s actions as unkept commitments. This episode highlights internal Republican tensions over crypto regulation and privacy safeguards.

Greene’s stance aligns with her personal disclosures; she invested $60,000 in BlackRock’s IBIT Bitcoin ETF fund this year, signaling her pro-crypto leanings while remaining vigilant against perceived federal overreach. She has even likened CBDCs to the “Mark of the Beast” from the Bible’s Book of Revelation, underscoring her ideological opposition rooted in anti-surveillance arguments.

Understanding CBDCs and Stablecoins in the GENIUS Act

A central bank digital currency (CBDC) represents a digital form of a nation’s fiat money, issued and backed by its central bank, such as the Federal Reserve in the U.S. Unlike cryptocurrencies like Bitcoin, CBDCs would be centralized, potentially allowing for programmable features and direct government integration into financial systems. Global trials are underway, including in the European Union, but in the U.S., they spark debate over privacy and control.

The GENIUS Act, formally known as the Generating Engagement and New Initiatives for All Americans Using Stablecoins Act, focuses on private stablecoins—digital assets pegged to fiat currencies like the U.S. dollar. It establishes clear rules for issuance, reserves, and consumer protections without classifying them as securities, bank deposits, or central bank money. Proponents argue this fosters innovation while maintaining stability, with the bill gaining traction for its balanced approach to crypto integration into mainstream finance.

Does the GENIUS Act Really Create a CBDC Loophole?

Regulatory attorney Braden Perry of Kennyhertz Perry LLC, specializing in litigation, regulatory compliance, and government investigations, dismisses Greene’s claims as lacking a “real legal basis.” In an interview with COINOTAG, Perry described the statement as “more political commentary than legal analysis.” He explained that a CBDC would be a digital dollar directly issued by the Federal Reserve, whereas the GENIUS Act strictly regulates private stablecoins, keeping them distinct from any government-issued currency.

Perry highlighted the bill’s explicit language: stablecoins “are not securities, not bank deposits, and not central bank money.” While some express concerns that regulated stablecoins might mimic CBDC functions—like efficient payments or programmability—this does not equate to a back door, he noted. “Some people worry that regulated stablecoins may perform functions similar to a digital dollar, but that does not make them a back-door CBDC,” Perry added. This distinction is crucial, as it preserves the decentralized ethos of private crypto projects while subjecting them to oversight for fraud prevention.

The Anti-CBDC Surveillance State Act, sponsored by Rep. Tom Emmer and passed by the House in July 2025, reinforces these boundaries by prohibiting the Federal Reserve from issuing a CBDC or similar product for public use. It cites anti-surveillance and financial privacy as core rationales, yet awaits Senate approval. Data from global CBDC pilots, such as China’s digital yuan, shows transaction volumes exceeding billions, but U.S. lawmakers like Greene fear similar systems could enable tracking akin to policies under the Chinese Communist Party, as echoed by Sen. Ted Cruz in 2022 statements.

Frequently Asked Questions

What is the Anti-CBDC Surveillance State Act and its Status?

The Anti-CBDC Surveillance State Act aims to block the Federal Reserve from issuing a retail CBDC, citing risks to privacy and potential government surveillance. Passed by the U.S. House in July 2025, it invokes financial freedom arguments but remains pending in the Senate, reflecting ongoing partisan divides over digital currency policy.

Are Stablecoins Under the GENIUS Act the Same as CBDCs?

No, stablecoins regulated by the GENIUS Act are privately issued digital assets backed by reserves, designed for stability and everyday transactions. In contrast, CBDCs are government-backed and centralized, with the Act explicitly differentiating them to prevent overlap and protect against federal overreach in personal finances.

Key Takeaways

• Regulatory Clarity for Stablecoins: The GENIUS Act provides a U.S. framework distinguishing private stablecoins from CBDCs, promoting innovation without enabling central bank digital currencies.
• Political Divide Exposed: Greene’s opposition reveals tensions within Republicans, with her vote against the bill underscoring fears of surveillance despite expert rebuttals.
• Privacy Protections Vital: Bills like the Anti-CBDC Act highlight the need for legislation safeguarding financial autonomy, urging lawmakers to prioritize consumer rights in crypto evolution.

Conclusion

The GENIUS Act CBDC controversy illustrates the delicate balance between fostering cryptocurrency growth and guarding against overreach in U.S. financial systems. While Rep. Marjorie Taylor Greene warns of a loophole enabling CBDCs, experts like Braden Perry affirm the legislation’s clear separation of stablecoins from central bank money, ensuring privacy remains intact. As debates continue in Congress, including the stalled Anti-CBDC Surveillance State Act, the crypto community should monitor developments closely. Staying engaged with evolving regulations will empower informed decisions in this dynamic landscape.