Stablecoin regulation is not about consumer protection: it is about the dollar

The GENIUS Act mandates Treasury bill reserves. FASB wants stablecoins counted as cash. The Treasury is writing enforcement rules for January 2027. Every provision points the same direction, and it is not toward protecting retail investors. Summary The GENIUS Act requires payment stablecoin issuers to hold reserves in U.S. Treasury bills, insured bank deposits, or Treasury repurchase agreements, turning every compliant stablecoin into a vehicle for dollar denominated sovereign debt distribution. Tether holds approximately $98 billion in U.S. Treasury bills as of its latest attestation, a position larger than the sovereign Treasury holdings of all but 18 countries, making a single stablecoin issuer one of the largest buyers of American government debt. FASB proposed three tests for stablecoins to qualify as cash equivalents on corporate balance sheets: redemption at par within one business day, reserves in low risk liquid assets, and independent attestation, codifying dollar stablecoins into the accounting system that underpins corporate finance. The U.S. Treasury published proposed rules on August 17 defining when payment stablecoins are issued, offered, or sold in the United State...