Galaxy’s Head of Research Calls Stablecoin Bill Key to U.S. Dollar Dominance
As the window for stablecoin legislation narrows, Alex Thorn, Head of Research at Galaxy, has issued a sharp warning: the GENIUS Act, a bipartisan proposal aimed at regulating payment stablecoins, is on "life support."
In a series of public remarks, Thorn called on lawmakers—particularly Democrats—to propose reasonable compromises instead of “fundamental overhauls” if they genuinely want to see the bill pass. “Anyone who cares to see something passed should be hitting the phones all weekend,” he said. “Time is running out.”
More Than a Crypto Bill
Thorn emphasized that the GENIUS Act is not a “crypto bill” in the traditional sense. Rather, it is a strategic tool for reinforcing U.S. dollar dominance globally.
“It’s a ‘dollar dominance’ bill,” he noted, explaining that stablecoins have the power to “dollarize the smartphones of citizens worldwide,” even in countries where leadership is distancing from U.S. influence.
This comes at a time of growing geopolitical fragmentation, with China and Europe advancing centralized, surveillance-heavy CBDCs. Thorn argues that dollar-backed stablecoins, if designed correctly, can serve as a countervailing force, extending American financial influence without direct political involvement.
Compete with China, Don’t Emulate It
A central theme in Thorn’s position is differentiation. While stablecoins already possess freeze-and-seize functionality, they must avoid the pitfalls of authoritarian digital currency models.
“There can’t be whitelists. Validators and nodes must be able to enter and exit permissionlessly,” he said. “They must compete with China, not emulate it.”
Fiscal Utility: Funding U.S. Debt
Highlighting a striking projection, Thorn referenced Bank of America’s estimate that stablecoins could drive $1.2 trillion in U.S. Treasury demand by 2030, effectively becoming the largest holders of U.S. debt. In an era of waning foreign demand for Treasuries, this would provide critical support for U.S. fiscal sustainability.
“Both parties should understand the need for new owners of U.S. debt,” Thorn added.
No Free Pass for Crypto
Critics often frame crypto legislation as overly favorable to the industry, but Thorn was clear: the GENIUS Act increases regulatory burden on stablecoin issuers, enforcing a strict federal standard with both prudential and consumer protections.
“There’s no ‘handouts’ in this bill,” he stated. “It provides consumer safety and a pathway for growth and innovation.”
A Broader Warning
Thorn cautioned that if the GENIUS Act fails in the Senate, it will likely deal a blow to hopes for broader crypto market structure legislation—an outcome that could stall long-term innovation in the space.
And while he supports regulation for stablecoins, Thorn concluded with a reminder of first principles:
“If you want or need truly permissionless, unseizeable, non-sovereign store of value, Bitcoin is the answer.”
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
