Senator Elizabeth Warren has criticized the recently passed GENIUS Act, indicating that the American public will suffer consequences from this crypto legislation. Signed into law by President Trump, the act creates a legal framework for stablecoins, fostering interest among banks and retailers. During an interview, Warren acknowledged the necessity for robust crypto regulation but expressed concern over the industry's influence in shaping the legislation, equating it to past financial legislation that contributed to the 2008 crisis. She stated that if the U.S. government operates in favor of certain industries, it fosters wealth for a few while imposing costs on many. Warren's historical comparison highlighted the Commodity Futures Modernization Act of 2000, which allowed unsupervised derivatives trading, paralleling potential risks with stablecoin regulation. She warned that the current legislation could give a false sense of security regarding the stability of stablecoins and raised alarms about the potential for large corporations to misuse the technology.

Source 🔗