The GENIUS Act: A Threat to Crypto’s Core Values
When Donald Trump signed the GENIUS Act on July 18, it was met with applause from crypto company CEOs, but not everyone is celebrating. In fact, many believe that the GENIUS Act goes against the ethos of crypto, reinforcing U.S. financial dominance and compliance hurdles that sideline smaller players and restrict financial sovereignty, particularly in the Global South.
The GENIUS Act is designed as a consumer protection measure, requiring stablecoin issuers to publish reports and provide a framework for regulating custody, restrictions on stablecoin activities, and financial stability and AML compliance. However, this increased regulatory burden will ultimately favor large institutions, shutting out innovators and entrepreneurs who developed cryptocurrencies and undermining their mission to democratize finance.
Decentralization as Resistance
To preserve cryptocurrencies’ original ethos of permissionless access and inclusion, the Global South must lead the way by building decentralized peer-to-peer systems that reject dependence on the US-defined “secure” cryptocurrency. This is crucial, as the GENIUS Act will cement U.S. dominance in global finance, which is not good for anyone outside of the US, especially those in the Global South.
Compliance costs will be a significant hurdle for smaller players, and large institutions will dominate the cryptocurrency space. This will exclude the little people and hurt those in the Global South, who are already marginalized. The GENIUS Act is a step in the wrong direction, and it’s essential to recognize the potential consequences of this legislation.
The Impact on the Global South
The GENIUS Act will have far-reaching consequences for the Global South, where young entrepreneurs are using crypto for survival, not speculation. Access to cryptocurrencies represents dignity, as it gives them the opportunity to earn, trade, and save money without waiting for permission from a bank that never wanted to serve them. However, the GENIUS Act risks reversing this progress by shrouding financial freedom in bureaucracy and presumptuously labeling it “protection.”
The irony is that the same compliance rules that empower Wall Street will hinder innovation in Nairobi, Caracas, and Dhaka. It’s essential to recognize that the Global South must take a leading role in defining the next phase of the crypto movement, rather than being a passive participant. Real innovation won’t come from Washington or Silicon Valley; it will come from communities using crypto to regain financial independence from the ground up.
A Call to Action
The concrete solution for the future is to build independent, decentralized systems based on peer-to-peer trust and eliminate the need for institutional approval. Creating a truly open financial network owned by the people who use it means we cannot rely on U.S. lawmakers or corporate leaders to protect this mission. We must protect it ourselves by choosing platforms that honor the original spirit of crypto – permissionless, borderless, and inclusive.
Unless we resist US attempts to manipulate us and follow their example, it won’t be long before the elites who control our currencies take complete control of cryptocurrencies. If crypto is to fulfill its promise, the Global South must stop being a passive participant and take a leading role in defining the next phase of this movement. Time is running out, and it’s essential to take action now.
Read the original article at https://crypto.news/the-genius-act-goes-against-the-ethos-of-crypto/
Ray Youssef is a well-known entrepreneur and humanitarian in the global crypto industry. He is the founder of NoOnes, a peer-to-peer platform expanding financial freedom in emerging markets, and former CEO of Paxful, one of the world’s largest P2P Bitcoin marketplaces. Youssef has focused his career on developing tools that empower underserved communities, particularly in Africa, the Middle East, and Latin America. His work combines advocacy for cryptocurrency adoption with a strong stance against financial censorship, making him a leading voice on how digital assets can transform access to money in the Global South.
