Senator Elizabeth Warren criticized the recently passed GENIUS Act, claiming that it allows the crypto industry to effectively write its own legislation, which may come at the expense of the American public. Signed into law by President Trump, the act provides a framework for stablecoin issuance and trading, leading to increased interest from banks and retailers. Warren emphasized that while strong crypto regulation is necessary, legislation driven by industry interests is problematic. She drew historical parallels to the Commodity Futures Modernization Act of 2000, which many believe contributed to the 2008 financial crisis. Warren noted that lobbying expenditures from the crypto industry have exceeded past efforts in Washington, allowing the industry to shape regulatory outcomes. She cautioned that poorly regulated stablecoins could lead to significant risks, akin to past financial crises, where the public bore the brunt of industry failures. Warren's comments echo concerns from other financial experts regarding the potential for unstable stablecoin issuances traced to misuse of investor trust.

Source 🔗