Sen. Elizabeth Warren Criticizes GENIUS Act, Predicting Negative Impact on American People
Sen. Elizabeth Warren (D-MA) has slammed the recently passed GENIUS Act, saying the American people will “pay the price” for the groundbreaking crypto legislation.
The Impact of the GENIUS Act
The act, which was signed into law by President Donald Trump earlier this month, provides legal clarity for stablecoins. It establishes a framework for issuing and trading stablecoins, which has prompted increased interest in them from banks and major retailers.
Warren’s Concerns
In an interview with Vanity Fair, Warren acknowledged the U.S. needs “strong crypto legislation,” but added that “jamming through industry-designed bills is a mistake.” She emphasized the importance of getting the regulatory framework right.
Warren expressed worries about the influence of the crypto industry on legislation, drawing parallels to the 2008 financial crisis and the role of industry-written bills in exacerbating the situation.
Expert Opinions
Economics professor Sergi Basco shared similar concerns about the GENIUS Act, highlighting the presumption of safety it gives stablecoins and the potential risks of insufficient regulation leading to bank runs.
Trump’s Involvement and Warren’s Criticism
Warren also criticized Trump’s involvement in the crypto space, particularly his decision to disband the Department of Justice’s crypto enforcement unit and alleged interference with SEC enforcement actions.
Stablecoins and Big Business
Warren has been vocal about the potential abuse of stablecoins by big business, warning that billionaires like Elon Musk, Jeff Bezos, and Mark Zuckerberg could exploit stablecoins to track purchases, exploit data, and stifle competition.
Overall, Warren’s criticism of the GENIUS Act and the broader implications of crypto legislation reflect a concern for protecting consumers and ensuring responsible regulation in the rapidly evolving crypto industry.