Senator Elizabeth Warren has criticized the recent GENIUS Act, stating that the American people will face negative consequences from this new cryptocurrency legislation. Signed into law by President Trump, the GENIUS Act provides a regulatory framework for stablecoins but has drawn concerns regarding its formulation, which some see as driven by the crypto industry's lobbying efforts. Warren has compared the act to the Commodity Futures Modernization Act of 2000, which some attribute to the 2008 financial crisis due to lack of adequate regulation. In her critique, Warren emphasized that strong crypto legislation is necessary but warned against hasty approvals of industry-favored legislation. She highlighted the increased lobbying expenditures from the crypto industry, which she claims can lead to legislation benefiting a select few at the expense of the public. Warren's stance reflects broader worries about potential abuses of stablecoins by influential business figures. Her comments echo those of various experts who caution that the current regulations may not adequately prevent risks associated with private stablecoins, including the potential for bank runs and financial instability.

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