Opinion: Stablecoin legislation should safeguard financial privacy

Jennifer J. Schulp, director of financial regulation research at the Cato Institute, pointed out in an op-ed that stablecoin legislation under consideration in the US Congress, including the GENIUS Act and the STABLE Act, is designed to combat illegal financial activities, but must avoid triggering excessive financial surveillance of users.
She stressed that if stablecoin issuers were to be regulated under the Bank Secrecy Act (BSA), it could lead to comprehensive tracking of user transactions and erode personal privacy. Schulp called on lawmakers to balance innovation and privacy protection when formulating anti-money laundering measures to ensure that stablecoins promote payment efficiency without becoming a tool for government surveillance.