Fed Governor Barr flags potential Bitcoin loophole in GENIUS Act
Crypto Briefing
Fed Governor Barr warned the GENIUS Act might allow Bitcoin to back stablecoins, posing risks if Bitcoin's price drops.Summary
Federal Reserve Governor Michael Barr expressed concern that the proposed GENIUS Act could create a loophole allowing stablecoin issuers to use Bitcoin as a legal reserve asset, based on its legal tender status in El Salvador. Barr warned that if Bitcoin's price were to crash, this reliance could undermine stablecoin stability and erode investor confidence. Barr, a proponent of strong regulatory frameworks for stablecoins, stressed the need for robust guardrails to ensure these digital assets can safely benefit the financial system while maintaining stability.
(Source：Crypto Briefing)