Senator Elizabeth Warren criticized the recently passed GENIUS Act, emphasizing that the American public will suffer the consequences of what she sees as legislation crafted by the crypto industry itself. The act, signed into law by President Donald Trump, provides a legal framework for stablecoins and has sparked significant interest from banks and major retailers. Although Warren acknowledges the necessity for robust crypto regulations, she warns against hastily approving industry-favored bills. She draws parallels to the Commodity Futures Modernization Act of 2000, which some believe contributed to the 2008 financial crisis due to its lax regulations. Furthermore, Warren expressed concerns over the overwhelming influence of crypto lobbying in Washington and warned against the specter of elite enrichment at the expense of the public. Her apprehensions reflect broader concerns among economists regarding the potential for stablecoins to be misused by large corporations, much like traditional financial instruments that contributed to past economic downturns.

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