GENIUS law goes against the spirit of cryptocurrencies

Cryptocurrency CEOs led the applause when Donald Trump signed the GENIUS Act on July 18, and many attended the signing. I didn’t applaud GENIUS because I think it goes against the spirit of cryptocurrencies.

Trump himself said so. The point of GENIUS is to “consolidate America’s dominance in global finance.” This is not good for people who are not from the US. And it’s not good for this little guy in the long run either. That’s definitely not good for people in the Global South.

GENIUS’s particular focus was on consumer protection. This is because stablecoin issuers are required to issue reports to increase transparency while providing a regulatory framework for custody, custody, limits on stablecoin activity, financial stability and AML compliance. This is a big part of the problem.

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Compliance always hurts the little guy, but when it comes to banking, it doesn’t matter whether you’re the little guy from the Deep South or the Global South. The cost of compliance means large institutions control cryptocurrencies. It’s already happening. They decide who has access to finance, who can use their money, and where they can spend it. They’re going to keep the little guys out, and that’s going to hurt people in the Global South. That’s why I believe GENIUS goes against the spirit of cryptocurrencies.

My views on privacy and trustless principles in cryptocurrencies have long been controversial. I have been encouraging users to be self-disciplined and telling them not to store cryptocurrencies in wallets on my old company’s platform. I temporarily closed my previous business and urged users to resist doing business with U.S.-based companies, citing privacy concerns and regulatory restrictions.

Despite my pleas, most crypto users continue to allow exchange platforms to protect their coins, and most crypto advocates support the GENIUS Act. Two influential cryptocurrency advocacy groups also pushed back against banking groups that proposed changes to the law.

So far we have come. Alleged supporters of cryptocurrencies are defending bills that would help destroy the mission of cryptocurrencies. Those of us who were around when cryptocurrencies first gained attention thought they would democratize money and be a tool to help and protect the little people. Industry groups and most crypto CEOs are now saying it’s great to be able to trust the government to protect cryptocurrencies.

Cryptocurrency analysts say the federal regulatory system does more than protect consumers. It would also end the confusion that often occurs when companies try to negotiate conflicting state laws. The regulation will also strengthen the role of the US dollar in cryptocurrencies, as most stablecoins are pegged to the dollar. Some industry experts even believe that GENIUS will foster innovation because funding will be more available if it operates in a clearer regulatory environment. Naturally, I disagree.

Cryptocurrency was started by small people. They are innovators and entrepreneurs, and this law will make it harder for new entrepreneurs to get their businesses off the ground. Cryptocurrency has been taken over by the tycoons and elites who don’t care about its mission to democratize money. They don’t want it to be permissionless or trustless. they want to control it.

The GENIUS Act as a whole is just one part of a broader shift, a global effort to absorb cryptocurrencies into the traditional financial order. For many in the Global North, this move feels like a step in maturation. But for those of us in the Global South, it feels like colonization is digitally shaped and creates economic dependence. Using the GENIUS Act as a tool, the United States and its allies will define what a “secure” cryptocurrency looks like. In the second embodiment, we lose the freedom that made crypto revolutionary in the first place.

Ironically, the very same compliance rules that empower Wall Street will hinder innovation in Nairobi, Caracas, and Dhaka. In these places, young entrepreneurs are using cryptocurrencies not for speculation but for survival. For these regions, access to cryptocurrencies represents dignity and enables the ability to earn, trade, and save without waiting for permission from banks that would never want to serve them. Now, GENIUS risks reversing that progress by wrapping economic freedom in a bureaucratic framework and pretentiously calling it “protection.”

A concrete future solution is to eliminate institutional approval and build an independent, decentralized system based on peer-to-peer trust. Building a truly open financial network that belongs to the people who use it means we can’t rely on American lawmakers or corporate executives to protect this mission. We must protect ourselves by choosing platforms that respect the true spirit of cryptocurrencies: permissionless, borderless, and inclusive.

Unless all of us in the Global South resist America’s attempts to manipulate us into following their lead, it will not be long before the elites who control our currencies have complete control over cryptocurrencies. For cryptocurrencies to deliver on their promise, the Global South must stop being passive participants and become leaders in defining the next phase of this movement. True innovation doesn’t come from Washington or Silicon Valley. Born from a community that uses cryptocurrencies to fundamentally regain financial independence.

Time is running out.

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