Senator Elizabeth Warren has criticized the recently passed GENIUS Act, warning that it could harm the American people by allowing the crypto industry to draft its own legislation. Signed into law by President Trump, the act provides a regulatory framework for stablecoins, which Warren argues poses risks reminiscent of the 2008 financial crisis. In an interview with Vanity Fair, she emphasized the need for well-crafted crypto legislation instead of rushed bills shaped by industry lobbying. Warren stated that the crypto sector's lobbying spending has reached unprecedented levels, allowing it to influence legislation to its advantage, similar to the pre-crisis banking industry laws. She specifically mentioned the Commodity Futures Modernization Act of 2000 as a cautionary example of how insufficient regulation has contributed to financial instability. Ultimately, she expressed concern that the GENIUS Act could lead to significant economic consequences for the average American, as few benefit while the wealthy prosper. Warren has consistently voiced skepticism about the potential misuse of stablecoins by major corporations, highlighting risks that could arise from their issuance.

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