Senator Elizabeth Warren has criticized the newly passed GENIUS Act, stating that the American people will bear the consequences of this legislation. Signed into law by President Trump, the act establishes a framework for stablecoins, aiming to clarify their issuance and trading to attract banks and retailers. In an interview, Warren acknowledged the necessity for strong crypto regulations but cautioned against bills crafted by the industry itself. She compared the GENIUS Act to the 2000 Commodity Futures Modernization Act, asserting that industry-designed legislation could lead to economic risks similar to those preceding the 2008 financial crisis. Warren highlighted the immense lobbying power of the crypto industry, claiming it has resulted in the industry crafting its own regulatory framework. She expressed concerns that unregulated stablecoins could contribute to financial instability, especially recalling recent banking events where similar regulatory oversights had detrimental effects. Warren's viewpoint aligns with other experts who worry that this legislation might create a false sense of security regarding the safety of stablecoins. Overall, her critique revolves around the potential repercussions of inadequate oversight over an evolving and influential crypto market.

Source 🔗