Critics Misinterpret the GENIUS Act: Here’s What It Really Does
The GENIUS Act has sparked debate, with many assuming it exempts Bitcoin from taxes. That’s not the case. Instead, its real impact lies in dismantling Wall Street’s control over dollar clearing—a far more significant shift for the financial system.
At its core, the GENIUS Act challenges the traditional banking monopoly on dollar transactions. Today, moving money globally requires intermediaries like banks and payment processors, which slow down transactions and add fees. The Act opens the door for alternatives, including blockchain-based systems, to compete in clearing dollar-denominated transactions.
This doesn’t mean Bitcoin or other cryptocurrencies suddenly become tax-free. The IRS still treats them as property, meaning capital gains rules apply. The confusion likely stems from the Act’s broader push for financial innovation, which some misinterpret as a free pass for crypto.
The bigger story is how the GENIUS Act could decentralize financial power. By allowing non-bank entities to clear dollar transactions, it reduces reliance on legacy institutions. This could lower costs, speed up cross-border payments, and create new opportunities for fintech and crypto projects.
Critics who focus solely on the tax angle miss the point. The Act isn’t about avoiding taxes—it’s about breaking Wall Street’s grip on money movement. For crypto, this could mean easier integration with traditional finance, but the rules remain unchanged when it comes to reporting and paying taxes.
In short, the GENIUS Act is a step toward a more open financial system, not a loophole for crypto investors. Its real significance lies in challenging the status quo, not in altering tax obligations.
