Senator Elizabeth Warren criticized the recently passed GENIUS Act, emphasizing that the American public will bear the consequences of this legislation. Signed into law by President Donald Trump, the act offers a framework for stablecoin issuance and trading, generating interest among banks and retailers. Warren acknowledged the necessity for clear crypto regulation but condemned the process as a mistake, arguing that the crypto industry is effectively drafting its own laws. She drew parallels with the Commodity Futures Modernization Act of 2000, suggesting that similar scenarios led to the 2008 financial crisis. According to her, the excessive lobbying by the crypto industry has compromised legislative integrity, resulting in a framework that does not adequately protect consumers or prevent financial vulnerabilities. Warren’s warnings echo concerns that stablecoin legislation could create misleading assumptions about safety, potentially leading to crises like bank runs.

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