Been staring at the @GeniusOfficial Act's reserve disclosure mechanics for the last hour.
The FDIC's April 7 proposed rule — RIN 3064-AG19 — finally made something click. Monthly reserve reports, CEO and CFO certified under penalty of law, published on the issuer's website. Third-party accounting firm attestations. Annual audits for anyone over $50B outstanding.
None of it lands on-chain.
$GENIUS That's the thing. The "trust in on-chain payments" story is being built on traditional audit infrastructure — accountants, certifications, federal filings. The blockchain handles settlement velocity. The trust layer is still a PDF on a website and a signed document in a regulator's inbox.
Which isn't necessarily wrong. TerraUSD didn't collapse because of a bad audit regime — it had no real audit regime. So maybe this is just what trust actually looks like before the rails fully mature. I'm not sure I'm opposed to it, honestly.
But I keep sitting with this: we're calling it reshaping trust in on-chain payments, and the trust mechanism is almost entirely off-chain. Is that a feature, or is it just the gap we haven't figured out how to close yet?