Viewpoint: Stablecoin legislation should protect financial privacy

Jennifer J. Schulp, Director of Financial Regulation Studies at the Cato Institute, stated in a column that the stablecoin legislation being considered by the U.S. Congress (including the GENIUS Act and the STABLE Act) aims to combat illegal financial activities, but must avoid triggering excessive financial monitoring of users. She emphasized that if stablecoin issuers are subject to regulation under the Bank Secrecy Act (BSA), it could lead to comprehensive tracking of user transactions, eroding individual privacy rights. Schulp called on legislators to consider both innovation and privacy protection when developing anti-money laundering measures, ensuring that stablecoins promote payment efficiency without becoming a tool for government surveillance.