Stablecoin regulation is not about consumer protection: it is about the dollar

The GENIUS Act mandates Treasury bill reserves. FASB wants stablecoins counted as cash. The Treasury is writing enforcement rules for January 2027. Every provision points the same direction, and it is not toward protecting retail investors. The debate over stablecoin regulation in Washington has been framed, from the first hearing to the most recent markup, as a question of consumer protection. Are reserves adequate? Can holders redeem at par? Is the issuer solvent? These are the questions that legislators ask in public, the questions that lobbyists answer in testimony, and the questions that journalists use to structure their coverage. They…