Sen. Elizabeth Warren has criticized the recently passed GENIUS Act, warning that the American public will bear the consequences of this legislative decision. The act, signed into law by President Donald Trump, provides legal clarity for stablecoins and establishes a framework for their issuance and trading. While acknowledging the necessity for strong regulations in the crypto sector, Warren condemned the influence of crypto industry lobbying in shaping the legislation. She likened the act to the Commodity Futures Modernization Act of 2000, which contributed to the 2008 financial crisis by allowing over-the-counter derivatives to remain largely unregulated. Warren expressed her concern that the GENIUS Act enables the crypto industry to effectively write its own laws, potentially leading to harmful economic consequences for ordinary Americans. Echoing similar concerns raised by economic experts, she emphasized the need for robust regulatory measures that can prevent risks associated with private stablecoins and ensure sufficient oversight.

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