Senator Elizabeth Warren criticized the recently passed GENIUS Act, claiming that it represents a danger for the American public due to the influence of the crypto industry on U.S. legislation. Signed into law by President Trump, the act aims to provide clarity on stablecoin issuance and trading. Warren expressed the necessity of strong crypto regulation but warned against allowing the industry to craft its own laws, likening the situation to the Commodity Futures Modernization Act of 2000, which some believe contributed to the 2008 financial crisis. She cited concerns about the extensive lobbying by crypto firms that allow them to essentially write legislation. Warren suggested that such practices lead to wealth accumulation for a few at the expense of the broader population, echoing worries that unstable stablecoins could pose similar risks as past financial products. Additionally, she reiterated her criticism of Trump’s ties to the crypto sector and potential conflicts of interest surrounding stablecoin regulation.

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