Senator Elizabeth Warren criticized the recently passed GENIUS Act, warning that the American people will face negative consequences from the legislation. Signed by President Trump, the act aims to provide a regulatory framework for stablecoins but has been criticized for allowing the crypto industry to influence its own regulation. In an interview, Warren expressed the need for comprehensive crypto legislation, but cautioned against passing bills designed by the industry itself. Drawing parallels to the Commodity Futures Modernization Act of 2000, which some argue contributed to the 2008 financial crisis, Warren highlighted the dangers of allowing industries to write their own legislation. She emphasized that increased lobbying from the crypto sector has enabled this outcome, where a select few become wealthy while the public bears the burden. Warren raised concerns over the potential misuse of stablecoins by major corporations, which could infringe on consumer privacy and market competition. This echoed sentiments shared by experts who worry about the regulatory oversight of stablecoin issuers and the risks of bank runs, particularly in light of recent financial turmoil.

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