Senator Elizabeth Warren criticized the newly enacted GENIUS Act, suggesting that it represents the cryptocurrency industry's manipulation of US legislation, similar to the precedents leading up to the 2008 financial crisis. Signed into law by President Trump, the GENIUS Act facilitates the issuing and trading of stablecoins, but Warren claims it was influenced by heavy lobbying from the crypto sector, which she argues undermines effective regulatory measures. Highlighting parallels with the Commodity Futures Modernization Act of 2000, she warned that such legislation could pave the way for financial instability. Warren stated that true regulation is needed to ensure consumer protection and prevent corporate exploitation, cautioning that unchecked lobbying could result in substantial costs to the American public. She pointed out that like past financial products that lacked oversight, poorly designed stablecoin legislation could lead to significant economic woes, emphasizing the importance of thorough oversight to avoid repeating history.

Source 🔗