Roubini’s sharp criticism of crypto legislation
Nouriel Roubini has launched another attack on cryptocurrency, this time targeting the GENIUS Act specifically. He’s calling the legislation reckless, which is pretty strong language even for him. The economist, known for his bearish views, says stablecoins could trigger bank runs if they’re allowed to operate without proper safeguards.
He’s particularly concerned about the lack of lender-of-last-resort support and deposit insurance for stablecoins. Roubini argues that some industry players want interest paid on stablecoins, which he believes could “undermine the foundations of the banking system.” That’s a serious claim, and it gets to the heart of what makes traditional banking work.
Bitcoin’s performance challenges its narrative
Meanwhile, Bitcoin continues to struggle. It was trading around $67,400 on Wednesday, down about 45% from its late-October high. Roubini calls Bitcoin a “pseudo-asset class” and says its use as an inflation hedge has been disproven. He’s not alone in noticing this—gold has been outperforming crypto as a hedge, which is interesting given the current economic environment.
What’s striking is that this decline isn’t happening because of regulatory crackdowns. Washington has actually been fairly friendly to crypto lately. Big firms have entered the space, Wall Street has treated it like a real asset, and Bitcoin got much of what it wanted. Yet the price still fell. That suggests maybe the problem isn’t external pressure, but something internal to the asset itself.
The stablecoin debate heats up
Roubini’s mockingly suggested the GENIUS Act should be called the “Reckless Idiot Act.” He points to crypto’s use in illegal transactions and argues that pushing it into banks could put the financial system in danger. This isn’t just theoretical for him—he sees stablecoins as particularly risky because they could create parallel banking systems without the safety nets we’ve built over decades.
The contrast with other voices is stark. Robert Kiyosaki recently bought more Bitcoin at $67,000, citing the approaching mining of the 21 millionth Bitcoin and concerns about dollar devaluation. These two views capture how divided the crypto conversation remains—one side sees impending disaster, the other sees opportunity.
Market realities versus expectations
Looking at the numbers tells its own story. Spot Bitcoin ETFs have seen about $3.3 billion in outflows recently, while US gold ETFs pulled in more than $16 billion in the last three months. The digital-asset treasury model, which was once a big selling point for companies holding Bitcoin, has cracked. Companies that bought Bitcoin, issued shares, and created a value-boosting loop are now seeing that loop work in reverse.
Many of these companies trade below the worth of their Bitcoin holdings, which is a strange situation. It makes you wonder about the whole premise of corporate Bitcoin treasuries. If the asset is supposed to be a store of value, why are companies holding it trading at discounts to that value?
Stablecoins are actually beating Bitcoin in payments usage, and prediction markets are taking over speculation roles. The landscape is shifting in ways that maybe nobody fully anticipated. Roubini’s warnings might sound extreme, but they’re coming at a time when crypto’s weaknesses are becoming more visible, not less.
