Senator Elizabeth Warren criticized the recently passed GENIUS Act, emphasizing that the American people would ultimately ‘pay the price’ for it. The act provides legal clarity for stablecoins and was signed into law by President Donald Trump, which Warren believes reflects excessive industry influence on legislation. She stated that the U.S. requires ‘strong crypto legislation’ but warned against passing bills written by the industry. Warren compared the GENIUS Act to the Commodity Futures Modernization Act of 2000, which contributed to the 2008 financial crisis by allowing unregulated over-the-counter derivatives. She pointed to the significant lobbying expenditure by the crypto industry as a reason for this legislative shortcoming. The senator expressed concern over potential issues related to stablecoin regulation and risks of future financial crises, echoing sentiments of other experts. Despite acknowledging the necessity for a regulatory framework, Warren urged for a careful approach to ensure consumer protection and avoid repeating historical mistakes.

Source 🔗