TechFlow, May 15 — According to page 2 of the GENIUS Act draft disclosed by Eleanor Terrett, several key amendments have been introduced to strengthen financial regulation. The amendment explicitly prohibits stablecoin issuers from falsely claiming FDIC insurance coverage or backing by U.S. government credit, and bans the use of terms such as "United States" or "U.S. government" in stablecoin names to prevent consumer confusion.
Most importantly, the amendment includes restrictions on tech giants, explicitly prohibiting non-financial publicly traded companies such as Meta, Amazon, Google, and Microsoft from issuing stablecoins unless they meet strict standards regarding financial risk, consumer data privacy, and fair business practices, aiming to maintain separation between banking and commerce.
The amendment also strengthens enforcement mechanisms, allowing the Treasury Department to suspend an issuer's registration if there is "reckless or intentional violation," and expands ethical guidelines to cover special government employees (including Elon Musk), ensuring consistent application of financial conflict-of-interest standards.
