Senator Elizabeth Warren has criticized the recently passed GENIUS Act, claiming it represents a dangerous trend in crypto legislation where industry interests dominate. Signed into law earlier this month, the GENIUS Act establishes a framework for the issuance and trading of stablecoins. In an interview, Warren acknowledged the need for effective crypto regulation but warned against bills that are written by industry insiders, comparing the situation to the Commodity Futures Modernization Act of 2000, which contributed to the 2008 financial crisis. She argues that significant lobbying by the crypto industry has led to its ability to craft favorable legislation. Warren cautions that government favoritism toward industries can lead to inequality, where only a few benefit financially, while the broader public bears the costs. She also expressed concerns about the implications of stablecoins on consumer data privacy and economic stability, raising alarms that individuals could be manipulated through data exploitation by major corporations. Warren's historical analogy emphasizes the risks of insufficient regulation, particularly as the crypto landscape evolves and integrates further into the U.S. economy.

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