Crypto: The Genius Act could weaken the global financial system according to Amundi

While the stablecoins gain legitimacy, an American law revives fractures between monetary sovereignty and supremacy of the dollar. With the Genius Act, adopted by the Senate, Washington supervises the cryptos backed by the greenback. However in Europe, the response is organized. Amundi fears global destabilization. Behind this legal framework, a monetary offensive is emerging with systemic effects.

The Genius Act: a catalyst for monetary tilting?

The passage of the Genius Act to the American Senate marks a turning point for the Crypto sector. This legislation aims to establish a legal framework for stablecoins backed by the dollar, paving the way to national regulation of these assets.

Indeed, this new law, if it is also validated by the House of Representatives and then signed by President Trump, could lead to a unprecedented wave of demand for these cryptos. For Vincent Mortier, director of investments at Amundi, the consequences could be major: “It could be genius, or it could be evil”he underlines. Behind this ambivalent formula, it is a whole monetary architecture that could vacillate.

Projections on the Stablecoins market illustrate how much this regulatory change could be a lever effect. Several key data make it possible to measure the extent of the phenomenon:

• Other more daring estimates evoke a possible flight up to $ 2,000 billion;

• 98 % of stablecoins currently in circulation are backed by the dollar, which strengthens the centrality of the greenback in the ecosystem;

• However, more than 80 % of stablecoins transactions take place outside the United States, revealing largely globalized use;

• The Genius Act could also stimulate demand for American treasury bills, used as collateral, and therefore help indirectly finance the American deficit.

These concrete-chain data show that US law could induce a deep reconfiguration of international capital flows, with a potential shift towards global digital dollarization.

Systemic risks worldwide

The concerns expressed by Amundi go beyond market mechanisms or to technical regulation. They affect monetary sovereignty of states, especially outside the United States.

The CIO Vincent Mortier fears that these stablecoins, becoming in fact “Quasi-banques”capture deposits of individuals and companies outside traditional circuits. “People will drop money in a stablecoin assuming that they can withdraw it at any time”he explains.

This almost strapless function, coupled with the growing use of these assets as a means of payment, could disintermediate banking systems and weakening central banks, especially in emerging economies.

This concern is shared by several European financial authorities. Last April, the Italian Minister of Finance, Giancarlo Giorgetti, declared that the American policy on the Stablecoins constituted “An even more dangerous threat to European financial stability than the trade war waged by Trump”.

The International Regulations Bank (BRI) has also pointed out the risk of insufficient transparency, the leak of capital and loss of monetary policies. According to mortar, this massive adoption could even “Being perceived as an implicit message that the dollar is no longer so strong”suggesting a symbolic erosion of the authority of the greenback as its use dematerializes via private proxies.

The future of the global monetary system could thus be played, in part, in the field of Crypto regulation. If the Genius Act imposes itself as a major milestone in the American strategy of digital financial domination, European reactions show that a confrontation is looming.