What actually sucks about the GENIUS Act: stablecoin holders get first dibs if the stablecoin issuer defaults. Who can be issuers? Federally insured banks and subsidiaries. If these banks commingle deposits with reserves, then this will force banks to dip into deposits, if reserve alone fails […] - ThreadSky

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manlycoffee.techhub.social.ap.brid.gy • 20 days ago

What actually sucks about the GENIUS Act: stablecoin holders get first dibs if the stablecoin issuer defaults.

Who can be issuers?

Federally insured banks and subsidiaries.

If these banks commingle deposits with reserves, then this will force banks to dip into deposits, if reserve alone fails […]

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Sibshops.mastodon.online.ap.brid.gy•20 days ago

@manlycoffee I don't think pointing out that it's a regulatory cut-out is that bad of an argument. Molly White described it as such in one of her posts, as well.

manlycoffee.techhub.social.ap.brid.gy•20 days ago

@Sibshops

Thanks for telling me about this. I just looked it up, and my conclusions are that being a carve out in its current state is indeed concerning https://www.perplexity.ai/search/why-is-it-that-the-genius-act-CX8c7E23TbWLivpc_WZd3w

Sibshops.mastodon.online.ap.brid.gy•20 days ago

@manlycoffee Yes, exactly!

I actually thought your comment about fedidiots was about our previous conversation. 😅

https://mastodon.online/@Sibshops/114547149430527129

manlycoffee.techhub.social.ap.brid.gy•20 days ago

@Sibshops Not really. You were respectful.

Some people when they hear about blockchains, tend to immediately shut down, and it's annoying, I find.

Sibshops.mastodon.online.ap.brid.gy•20 days ago

@manlycoffee Well, in full disclosure, I'm one of those people, as I run a crypto-critical community on lemmy.

https://lemmy.world/c/buttcoin

However, I feel like criticism of crypto should come from a place of knowledge, not ignorance.

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