Economist flags stability risks if Genius Act becomes law

- By Thomas Chow
- 04 Jul 2025

The potential growth of stablecoins in the US fuelled by the Genius Act could harm financial stability and force the Federal Reserve to intervene with taxpayers’ money, argues Barry Eichengreen.

The professor of economics at the University of California, Berkeley tells Central Banking that potential runs on a stablecoin’s peg could have contagion effects on traditional financial markets.

“If there are panic sales of stablecoins, collateral will have to be liquidated – and that can spill over into

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