Senator Elizabeth Warren criticized the recently passed GENIUS Act, suggesting it is a reflection of the excessive influence that the crypto industry has on U.S. politics. She stated that this legislation, signed by President Trump, provides legal clarity for stablecoins but could lead to negative consequences for the American public. Warren highlighted that the industry effectively writes its own legislation due to its lobbying power, drawing parallels to the Commodity Futures Modernization Act of 2000, which is believed to have contributed to the 2008 financial crisis. She emphasized the need for thorough regulation, warning that passing bills designed by the industry could lead to financial instability, as seen in the collapse of Silicon Valley Bank. Her concerns echo those of some economists who fear the enactment of such legislation might mislead the public into assuming a false sense of safety regarding stablecoins, potentially leading to bank runs.

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