In a move that could reshape the intersection of Big Tech and digital currencies, U.S. lawmakers have introduced a revised version of the GENIUS Act, signaling a tightening grip on how stablecoins are managed and who gets to issue them. The core of the update revolves around one key idea: keeping powerful tech giants like Meta, Amazon, and Google far away from the business of stablecoin issuance or even holding them in any significant capacity.
The GENIUS Act — short for Guarding Against Emerging and Necessary Intermediation in the United States — was originally introduced to create guardrails for the booming stablecoin sector. But with the new amendments, the focus has sharpened considerably. Lawmakers are making it clear that they don’t want companies whose main operations aren’t in finance stepping into monetary territory.
Why Big Tech Is Being Pushed Out
According to the updated language of the bill, non-financial entities would be explicitly prohibited from issuing or storing value in stablecoins. This hits directly at companies like Meta (formerly Facebook), which once had grand plans for its own digital currency (Libra/Diem), as well as Amazon and Google, who have increasingly ventured into digital payments and financial services.
The reasoning behind the restriction is twofold: maintaining the long-standing U.S. principle of separating banking and commerce, and reducing potential systemic risks. Lawmakers worry that if a company with the size and influence of Amazon or Google were to begin circulating a stablecoin, it could threaten the stability of traditional financial systems or create monopolistic dynamics in the digital currency space.
A Move Toward Transparency and Control
Another cornerstone of the GENIUS Act’s amendments is transparency — especially when it comes to consumer protection and the oversight of digital assets. The updated proposal empowers the U.S. Treasury Department with greater authority to enforce these rules and take action against fraud or malpractice in the stablecoin market.
This is particularly important given the growing concerns over stablecoin reserves, peg integrity, and the potential for these digital assets to be misused in illicit financial activity. The new rules are designed not just to prevent fraud, but also to make stablecoin issuers more accountable to regulators and the public.
Industry Implications
These proposed changes are already stirring up strong reactions across both tech and crypto sectors. Supporters of the GENIUS Act argue that the legislation is a necessary safeguard to protect consumers and prevent the financial system from becoming overrun by unregulated digital currencies controlled by private corporations.
Critics, however, warn that such restrictions could stifle innovation and hinder the United States from remaining competitive in the global race to develop next-generation financial infrastructure. They argue that banning companies like Google or Meta from participating in stablecoin ecosystems may result in valuable innovation being driven offshore — particularly to jurisdictions with more favorable regulatory environments.
What Happens Next?
As the GENIUS Act makes its way through the legislative process, all eyes will be on how the final language of the bill evolves. Will lawmakers stick to their hard stance against Big Tech’s involvement in stablecoins, or will there be room for compromise that allows for limited participation under strict regulation?
For now, it’s clear that the U.S. government is doubling down on its efforts to draw bright lines around who can issue digital money — and Big Tech may soon find itself on the outside looking in.
