Fed Criticizes GENIUS Law for Flaws Exposing Stablecoin Risks

The Federal Reserve has voiced concerns about the GENIUS law’s regulatory framework, highlighting key gaps that expose stablecoins to systemic risks. Michael Barr, a Fed governor, pointed out that some stablecoin products are evading this legal framework, creating an ambiguity in their classification and a potential avenue for regulatory arbitrage. This lack of consistent oversight raises questions about the effectiveness of the GENIUS law in truly securing the crypto market.