According to ChainCatcher, citing CoinDesk, Jennifer J. Schulp, the Financial Regulation Research Director at Cato Institute, wrote in a column that the stablecoin legislation currently under review by the U.S. Congress (including the GENIUS and STABLE Acts), while aimed at combating illegal financial activities, must avoid excessive financial surveillance of users.
She emphasized that if stablecoin issuers are brought under the Bank Secrecy Act (BSA) regulation, it could lead to comprehensive tracking of user transactions, eroding personal privacy rights. Schulp called on legislators to balance innovation and privacy protection when formulating anti-money laundering measures, ensuring that stablecoins promote payment efficiency without becoming a government monitoring tool.
