Senator Elizabeth Warren criticized the recently passed GENIUS Act, stating that the American people will suffer consequences as a result of the legislation that aims to regulate stablecoins. Signed into law by President Donald Trump, the GENIUS Act provides a legal framework for stablecoin issuance and trading, which has attracted banking and retail interest. Warren expressed the need for effective crypto legislation but condemned the act as being influenced too heavily by the crypto industry. She drew parallels to the Commodity Futures Modernization Act of 2000, linking it to the 2008 financial crisis due to lax regulation. Warren highlighted the excessive lobbying spending by the crypto industry, allowing it to dictate terms and potentially undermine public trust. Moreover, she voiced concerns about the safety of stablecoins and the risk of bank runs, as echoed by experts in the field. Warren has been a longstanding critic of the crypto industry's influence on US politics, especially in regard to potential abuses by major businesses in launching stablecoins that could track consumer behavior and exploit data.

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