Opinion: Stablecoin Legislation Should Protect Financial Privacy

According to ChainCatcher and reported by CoinDesk, Jennifer J. Schulp, Director of Financial Regulation Studies at the Cato Institute, stated in a column that although the stablecoin legislation being considered by the U.S. Congress (including the GENIUS Act and the STABLE Act) aims to combat illegal financial activities, it must avoid leading to excessive financial surveillance of users.

She emphasized that if stablecoin issuers are subjected to regulation under the Bank Secrecy Act (BSA), it could lead to comprehensive tracking of user transactions, eroding personal privacy rights. Schulp urged lawmakers to balance innovation and privacy protection when drafting anti-money laundering measures, ensuring that stablecoins enhance payment efficiency without becoming tools for government surveillance.