Imagine a world where every dollar you are spending is traced, approved or denied in real time by a government agency. You are trying to send money to a friend of a political donation, but the transaction is blocked because the recipient is on a government’s “surveillance list.” You buy a book that is critical of a powerful politician and your account is marked for review.

This dystopian future sounds outrageous, but it is the logical end point of a fully government -controlled and monitored monetary system that some prominent American decision makers are in favor of. Its defenders claim that such a government omniscient system would prevent crime. In reality, it would ruin the core freedom of economic privacy and autonomy. Stableecoins are an existing alternative to this dystopia. They are both a great financial innovation and a bulwark against creeping financial authoritarianism. The US Congress will support this technology as the Senate Bank Committee weighs legislation to give clarity to the industry and its customers.

StableCeCoins, digital currencies associated with the value of traditional currencies such as the US dollar, provide the benefits of cryptocurrency – fast, cheap, boundless and programmable transactions – without the price volatility of assets like Bitcoin. They are typically supported 1: 1 with US dollar cash and cash equivalents, providing stability and trust. Their programmability allows transactions to be carried out automatically when the specified conditions are met, which unlocks tremendous potential for automated funding, supply chain efficiency and global trade.

Senators of the American political spectrum, which understands the current use cases and the enormous future opportunities that we cannot yet imagine, have proposed thought -provoking legislation for guidance in rules that will promote innovation while protecting consumers. This method of cooperation reflects an understanding that stableecoins could revolutionize global funding, improve economic inclusion and preserve the US dollar dominance in the digital age.

Unfortunately, some senators, especially Senator Elizabeth Warren (D-MA), are in sharp resistance to this progress. Instead of embracing innovation, she is pursuing legislation that would stifle stableecoins in their infant. Senator Warren paints stableecoins as tools for illegal activity and claims that they primarily facilitate fraud, drug trafficking and terrorist financing. Her characterization is not only inaccurate – it is dangerously misleading.

The data directly contradicts Senator Warren’s claims. Several reports from blockchain analysis companies consistently show that illegal activity represents a small fraction of stablecoin transactions – often less than 1% of the total volume. In fact, traditional cash is far more frequently used for money laundering and illegal trade than stableecoins has ever been. Blockchain technology, with its permanent and transparent headbook, actually makes illegal activity easier to trace and prosecute than cash-based crime.

Senator Warren’s wrongly informed worldview leads her to a closed, government-monitored financial system, where each transaction is investigated, private economic activity becomes impossible and access to financial tools is closely controlled. In addition to being a morally critical invasion of privacy, her design would be operationally impossible to implement.

It would also weaken the dollar’s global dominance as new economies and developing countries would turn to other digital currencies that are easier to access and use. Her limitations could not only prevent the development of an important new technology, but also interfere with and harm ordinary Americans and businesses, and people around the world who use stablecoins today to move value over the Internet as easily as sending an E email or text message, often to a fraction of traditional costs. For example:

• Larger US companies such as Visa and PayPal use stableecoins to settle some cross -border payments, reduce settlement times from days to minutes and lower costs.
• By earning dollars for the digital economy’s standard currency, StableCeCe’s dollar’s role strengthens the global reserve currency.
• Increased the global demand for dollar-denomined stableecoins is increasing the demand for US dollars and treasury securities, which helps fund state borrowing at lower rates.
• In countries suffering from high inflation or capital control, Stableecoin’s ordinary citizens provide a secure, dollar-denominated savings option that protects their wealth from financial management.
• Migrant workers who send money home can make it faster, cheap and more reliable with stablecoins than through traditional transfer services that often charge exorbitant fees.

Warren Vision rejects the open, public, universally accessible system that is being developed today – a system where both individuals and businesses can act freely without needing permission from banks or governments. Fortunately, there is still hope for a balanced legislative approach.

Senators Bill Hagty (R-TN), Kirsten Gillibrand (D-NY), Cynthia Lummis (R-WY) and Tim Scott (R-SC) have introduced the Bi-Partisan Genius Law that would create a constructive regulatory framework for stablecoins relating to legitimate concerns while enabling innovation. Genius Act and the White House Executive Order On Strengthening American leadership in digital financial technology, Will both ensure that the benefits of blockchain technology can be fully realized on open, freely available and transparent public blockchains.

Congress must embrace stableecoins and not fear them. The future of money is written today. Will the United States lead this transformation and ensure that digital dollars remain the global standard? Or will fear, wrong information and suffocating regulation give the future of the economy to other nations? The choice is clear: support innovation, adopt smart regulation and let stableecoin blossom.