The GENIUS Act is the U.S.'s first federal framework for stablecoins, requiring 1:1 reserves, federal licensing, and strict audits. It ensures safety for users and sets the global standard for digital dollar adoption.
GENIUS Act: What It Is, Why It Doesn't Exist, and How to Spot Fake Crypto Legislation
There is no GENIUS Act, a supposed U.S. federal law related to cryptocurrency regulation. Also known as Government Encouragement for Universal Innovation and Security Act, it’s a made-up term used by scammers to make fake airdrops, phishing sites, and crypto giveaways seem official. You won’t find it on Congress.gov, the IRS website, or any government crypto portal. But you will see it pop up in shady Telegram groups, fake Twitter ads, and phishing emails pretending to be from the SEC or Treasury Department.
Scammers use fake legislation names like the GENIUS Act to create a sense of legitimacy. They’ll say, "Enroll now to claim your GENIUS Act crypto reward," or "Your wallet was selected under the new GENIUS Act guidelines." These aren’t real programs—they’re social engineering traps. The same tactic shows up with other fake laws like the "Crypto Tax Relief Act" or "Digital Asset Protection Act." Real crypto regulation moves slowly, involves public hearings, and gets published in the Federal Register—not in a Discord DM from someone named "CryptoSenator42."
What you do find in the posts below are real examples of how scams mimic government-style language. The Position Exchange Times Square billboard airdrop, a fraudulent scheme claiming to distribute crypto via a physical billboard uses the same trick: fake authority. The Sonar Holiday airdrop, a non-existent Solana token giveaway pretends to be tied to a holiday event, just like the GENIUS Act pretends to be tied to federal policy. Even the Coinrate crypto exchange, a completely fictional platform uses official-sounding branding to look real. These aren’t random scams—they’re part of a pattern. Criminals rely on people trusting government-like names and urgent deadlines.
Real crypto laws, like DAC8 or CARF, are complex, published, and enforced by tax agencies—not promoted through TikTok ads. If a site asks for your seed phrase to "activate your GENIUS Act benefits," close it. If a newsletter says you’ve been "pre-approved" for free crypto under a law you’ve never heard of, delete it. The only thing the GENIUS Act gives you is a warning sign.
Below, you’ll find real cases of crypto scams disguised as official programs, broken-down guides on how to spot them, and clear explanations of what actual crypto regulation looks like. No fluff. No fake promises. Just what you need to avoid losing your crypto to a name that doesn’t exist.