The GENIUS Act, a major U.S. bill aimed at regulating dollar-backed stablecoins, is raising red flags in Europe.
According to Vincent Mortier, Chief Investment Officer at asset management giant Amundi, the legislation could unintentionally disrupt global finance — and even chip away at the dollar’s dominance.
Speaking to Reuters, Mortier said the bill’s name might prove ironic. “It could be genius — or it could be evil,” he remarked, warning that creating a fully collateralized digital dollar might backfire.
While stablecoins have long been seen as tools to strengthen the dollar’s influence, Mortier believes they may become its competition instead. The requirement that these tokens be backed 1:1 with U.S. assets, such as Treasuries, could signal fragility rather than confidence, he suggested.
Mortier also raised concerns about the role of issuers, who may effectively act like banks — without the oversight. That, he says, could destabilize global payments infrastructure, especially if tech giants like Apple or Musk’s X enter the space.
The GENIUS Act, passed by the Senate in mid-June, sets reserve and capital requirements for stablecoin issuers and is now awaiting House approval. The law could clear the way for corporate-backed digital dollars, potentially turning stablecoins into a $3.7 trillion market by the end of the decade, according to U.S. Treasury Secretary Scott Bessent.
Despite the warnings, many in the crypto sector see opportunity. Stablecoins — already worth over $250 billion — are among the fastest-growing digital assets, with most tied to the U.S. dollar. JPMorgan analysts expect that figure to double again soon.
Supporters argue the legislation would give a regulatory green light to real-world asset tokenization. Abdul Rafay Gadit, founder of ZigChain and former Standard Chartered exec, said it could fast-track the creation of compliant onchain financial products in areas like real estate and trade finance.
Whether the bill becomes a pillar of dollar strength or a catalyst for digital disruption, one thing is clear: global markets are watching closely.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/could-stablecoins-undermine-the-dollar-europes-largest-asset-manager-thinks-so/
