Senator Elizabeth Warren criticized the recent GENIUS Act, asserting that the American public will ultimately face the consequences of its implementation. Although she acknowledged the necessity for effective crypto legislation, she expressed concerns about the influence of the crypto industry in shaping such laws. The GENIUS Act, signed into law by President Trump, aims to clarify the legal framework surrounding stablecoins, increasing their traction among banks and retailers. Warren cautioned that the bill is reminiscent of the Commodity Futures Modernization Act of 2000, which some believe contributed to the financial crisis of 2008 by allowing unregulated derivatives. She emphasized that when legislation is crafted by industry players, it benefits a select few while putting average citizens at risk. Warren’s critique aligns with broader fears about potential abuse of stablecoins, especially by affluent individuals in the tech industry. Her warnings reflect a push for more robust regulations to safeguard the public from possible financial instability resulting from poorly crafted crypto laws.

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