Senator Elizabeth Warren has criticized the recently passed GENIUS Act, claiming that it allows the crypto industry to write its own legislation, which risks the American public suffering the consequences. Signed into law by President Donald Trump, the GENIUS Act establishes a framework for stablecoins, leading to greater interest from banks and retailers. In her interview, Warren emphasized the necessity for strong regulatory measures but cautioned against hastily passing industry-favored bills. Drawing parallels with the Commodity Futures Modernization Act of 2000, which is seen as a contributor to the 2008 financial crisis, she warns that history could repeat itself if the crypto legislation is not properly scrutinized. Warren remarked that the crypto industry has ramped up lobbying efforts significantly and has gained undue influence over the legislative process. Her concerns echo the views of analysts who point to potential risks associated with stablecoin issuance and regulation, highlighting the possibility of bank runs similar to those that affect traditional banks. Warren also reiterated her opposition to Trump’s crypto-related decisions, advocating against legislation that may benefit billionaires at the expense of consumer protection.

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