U.S. Congresswoman Marjorie Taylor Greene has alleged that there is a legal gap concerning Central Bank Digital Currency (CBDC) within the GENIUS Act. However, a regulatory expert lawyer has dismissed this claim as unfounded, stating that there is no substantial legal basis for such an assertion. CBDC is an emerging financial concept where central banks issue digital currency to enable payments that are more transparent, faster, and efficient compared to traditional currency. The GENIUS Act is part of U.S. legislation aimed at enhancing oversight and regulation of cryptocurrencies and digital financial products. It clearly defines the application and regulations for CBDCs to ensure stability and transparency within the financial system. Legal experts have challenged Greene’s claim, arguing that current regulations regarding CBDCs are sufficiently strong and comprehensive, with no exploitable legal loopholes. They affirm that the GENIUS Act contains appropriate laws to oversee CBDCs and protect the financial system. The development of CBDCs has become a significant global financial trend, promoting financial inclusion and efforts to formalize the informal economy. Nonetheless, security and privacy concerns remain topics of discussion that require legislative solutions. Going forward, further legal and technical adjustments concerning CBDCs are expected to ensure the technology’s secure and effective use, with ongoing reviews and reforms anticipated from government bodies and financial experts.
Source: decrypt
