Ripple CTO Emeritus David Schwartz has challenged the feasibility of a stablecoin that cannot freeze funds, following Circle's controversial handling of wallet freezes and a recent hack. Schwartz argued that the legal obligation to redeem stablecoins for fiat currency is essential, and court orders can dissolve this obligation, making freeze resistance incompatible with legal redeemability. The debate arises as Circle faces criticism for freezing 16 business wallets under a court order and failing to intervene during a $285 million hack. The GENIUS Act mandates stablecoin issuers to maintain the ability to freeze funds when legally required, highlighting the legal challenges of a freeze-proof stablecoin model.