Prevent Big Tech dominance over digital currencies and banking

The proposed STABLE Act and GENIUS Act raise significant concerns about handing excessive financial power to Big Tech companies like Meta, Amazon, and X (formerly Twitter). While the bills aim to regulate stablecoins, a key provision would allow non-financial corporations to create their own stablecoins through subsidiaries after obtaining regulatory approval. This could enable tech giants to issue privatized digital currencies and consolidate their dominance over payments systems and consumer data. Experts warn that if companies like Amazon issue widely-adopted stablecoins, it could undermine the productive role of banks in lending to businesses and consumers. There are also risks of increased surveillance, exploitative pricing algorithms, lack of consumer protections, and undue corporate influence over regulators, mirroring concerning developments seen with dominant payment platforms in China. Rather than fostering financial innovation, allowing Big Tech's encroachment into banking could cement the power of a handful of companies at the expense of a competitive and equitable financial system. Congress should reconsider provisions that open this door and maintain a clear separation between technology firms and banking activities. Protecting consumer privacy, fair market competition, and the ability of the real economy to access credit should be prioritized over the commercial interests of a few dominant corporations.