Senator Elizabeth Warren has criticized the recently passed GENIUS Act, claiming that it represents a dangerous instance of the crypto industry influencing legislation. While acknowledging the necessity for robust crypto regulation, Warren warned that hastily passed bills designed by industry insiders could have serious repercussions for the American people. She compared the GENIUS Act to the Commodity Futures Modernization Act of 2000, which is believed to have contributed to the 2008 financial crisis by allowing the derivatives industry to self-regulate. Warren expressed concern that the crypto lobby’s significant financial influence allows the industry to draft legislation that may not prioritize public safety over corporate gains. She emphasized the risk of stablecoins being misused by powerful entities, potentially tracking consumer purchases and exploiting personal data without proper oversight. Warren’s statements resonate with broader fears regarding the stability and regulation of stablecoins, particularly following events like the bank run on Silicon Valley Bank, demonstrating the fragility of such financial systems.

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