GENIUS Act Loophole Threatens to Upend Stablecoin Dominance—Here’s How

Stablecoins just got a curveball—buried in the GENIUS Act’s fine print is a provision that could let regulators freeze reserves without warning. Market makers are already repositioning.

The ‘Backdoor’ Clause Everyone Missed

Drafters slipped in ambiguous language about ‘temporary custodial measures’—legalese for seizure powers. Tether’s CTO calls it ‘a nuclear option for pegs.’

DeFi’s Contingency Plans Go Live

Major protocols quietly activated emergency overcollateralization modules this week. Aave’s stableswap pools now demand 110% backing on USDC positions.

This isn’t oversight—it’s financial theater. The same regulators who missed FTX now want keys to the vault. Buckle up for the next act.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.