Viewpoint: Stablecoin legislation should protect financial privacy and prevent excessive regulation.

According to Mars Finance, Jennifer J. Schulp, Director of Financial Regulation Studies at the Cato Institute, pointed out in a CoinDesk column that the stablecoin legislation currently under consideration by the U.S. Congress (including the GENIUS Act and the STABLE Act) aims to combat illegal financial activities but must avoid triggering excessive financial surveillance of users. She emphasized that if stablecoin issuers are subjected to regulation under the Bank Secrecy Act (BSA), it could lead to comprehensive tracking of user transactions, eroding personal privacy rights. Schulp urged lawmakers to balance innovation and privacy protection when formulating AML measures, ensuring that stablecoins enhance payment efficiency without becoming tools of government surveillance. (CoinDesk)