“Stable” dollars aren’t as stable as you think and new U.S. regulation might change everything.
For years, many of us have used USDT or USDC as if they were "stable dollars." But how stable are they really? And what happens now that the U.S. is directly regulating these kinds of tokens?
This article explores the concept of synthetic dollars, the hidden risks of so-called “stablecoins,” and the new GENIUS Act, which could redefine the future of digital money in the United States.
💵 I Don’t Call Them “Stable”—I Call Them Synthetic Dollars
USDT (Tether), USDC (Circle), and other dollar-pegged tokens have been marketed as "stablecoins." But for many DeFi and crypto users, that stability is merely superficial:
-
❗ Counterparty risk: we rely on a private company that promises 1:1 reserves... but doesn’t always hold or manage them properly.
-
📉 They can lose the peg: it’s already happened with USDT (2020) and USDC (during the Silicon Valley Bank crisis in 2023).
-
🚪 Subject to censorship: we’ve seen addresses frozen by Circle and Tether under regulatory or legal pressure.
So, are these really “dollars”? Not quite. They’re synthetic instruments mimicking the dollar, but operating with opaque or centralized financial structures.
🏛 Enter the GENIUS Act
The U.S. Senate just passed the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins). This law:
-
Establishes a federal framework for “payment stablecoin” issuers.
-
Requires 1:1 reserves, monthly audits, and public transparency reports.
-
Prioritizes user protection in case of bankruptcy.
-
Differentiates between large and small issuers, allowing state licenses only under federal conditions.
-
Classifies these tokens as payment instruments, not securities.
It marks the first serious step toward a digital dollar issued by private actors but regulated to the last detail.
🧠Now What? Will USDT and USDC Have to Comply?
Although the law doesn’t mention Tether or Circle by name, the message is clear:
If you want to issue synthetic dollars and operate in the U.S.,
you must comply with this legal framework or leave the market.
This means companies like Circle (already partly regulated) could adapt. But Tether, based offshore and lacking full audits, might face regulatory or banking exclusion.
In other words: the digital dollar proposed by the GENIUS Act could force current “stablecoins” to become fully regulated financial entities or disappear from the U.S. landscape.
🤔 What Does This Mean for Users?
- Less volatility, but more surveillance
- More transparency, but less sovereignty
- Less freedom, but more institutional “trust”
The underlying question is:
Do we want a regulated digital dollar with mass access but under close watch,
or do we prefer synthetic instruments, knowing their risks of censorship and collapse?
✍ Conclusion
The GENIUS Act is more than just technical legislation it’s an attempt to reclaim the monopoly over digital dollars. Synthetic dollars like USDT or USDC will no longer be able to hide under the “stable” disguise. It’s time to adapt or exit.
As users, it's time to question what kind of digital money we want to support and how to preserve our financial sovereignty without falling for convenient but dangerous solutions.