Senator Elizabeth Warren has criticized the recently passed GENIUS Act, which provides a regulatory framework for stablecoins. She expressed concerns over the influence of the crypto industry in shaping legislation, drawing comparisons to the Commodity Futures Modernization Act of 2000, which was linked to the 2008 financial crisis. Warren emphasized the need for proper legislative measures in the crypto space, stating that while there is a need for strong regulations, allowing the industry to draft its own laws could lead to significant consequences for the American public. She highlighted the increase in crypto lobbying expenditures, suggesting they facilitate legislation that primarily benefits a few, while the general populace may bear the financial burden. Warren's caution reflects broader concerns about the stability of stablecoins and potential regulatory gaps that may lead to bank runs, as seen with Silicon Valley Bank in 2023.

Source 🔗