What began as a routine Senate hearing on bipartisan crypto legislation ended with an unscripted, and highly unusual, exchange that left attendees visibly stunned.
After the hearing was all but over, a man who identified himself as Troy Reed stood up and asked Senator Cynthia Lummis, who was overseeing the hearing, permission to pose questions to the panel. While the hearing had already formally ended, Lummis agreed to hear what he had to say.
The man didn’t waste any time and questioned the panel about their thoughts on privately issued stablecoins, particularly those tied to World Liberty Finance. Reed argued that the legislation being proposed could “codify private monetary power”.
Let’s take a step back for a second and discuss what the man meant by “codifying private monetary power”. In essence, companies never had the power to issue currency, as these rights have been reserved by the State.
In other words, Reed was likely worried that the new legislation backing privately-issued stablecoins could formalize a system where private entities are capable of creating their own monetary system, potentially undermining the role of the Central Bank over “money” itself.
Troy Reed’s point is that this would allow stablecoin companies to basically become “mini Central Banks”, with the authority to issue widely used digital dollars—but without the same level of public accountability, democratic oversight, or monetary policy responsibility that central banks hold.
In essence, the GENIUS Act was introduced to prevent financial chaos from ensuing in the stablecoin sector, an already trillion-dollar industry. Its goal is to bring transparency, consumer protection, and reserve backing to a space that’s been operating in regulatory gray zones for years.
But by doing so, the U.S. Government would be granting stablecoin issuers as trusted financial institutions, effectively empowering them to behave like a private central bank. Basically, in the view of Troy Reed, it would allow private firms with political affiliations to issue dollar-like assets, giving a small group of companies a long-term monopoly over digital dollars.
While Reed’s concern sparked debate, many in the crypto industry argue that stablecoins offer critical innovation, financial inclusion, and a viable path toward digital dollar adoption, so long as proper safeguards are in place.
While the debate is certainly interesting, crypto advocates would most likely argue that the bill will do far more good than harm. By guaranteeing that minted tokens are 1:1 backed by real assets, the GENIUS Act could finally bring stability and legitimacy to a sector long criticized for operating in legal gray zones.
The paradoxical nature of the question makes it arguably the most interesting moment of today’s hearing. Unfortunately, the Panel brushed it off as if the question had veered into partisan politics, and refused to answer.
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