Senator Elizabeth Warren has expressed serious concerns about the newly enacted GENIUS Act, claiming it could have economic repercussions similar to those that followed the 2000 Commodity Futures Modernization Act.
Critique of the GENIUS Act
Senator Warren, a leading critic of the GENIUS Act, mentioned in an interview that the bill was shaped under pressure from crypto industry interests. She expressed concern over the potential for President Trump to exploit the new law for personal gain through stablecoin issuance.
Warren also highlighted that the act does not protect citizens' interests and creates risks similar to those that led to the 2008 financial crisis.
Comparison with the Commodity Futures Modernization Act
Warren compared the new law to the Commodity Futures Modernization Act, insisting that it allows unreliable players to dominate regulation and fails to protect people from financial risks. She referenced the year 2000 when the CFMA contributed to the creation of derivatives that ultimately led to the economic crisis.
Expert Opinions and Conclusions
Experts, including cryptocurrency market analysts, are also questioning the adequacy of the GENIUS Act. Some believe its shortcomings in risk management could create vulnerabilities similar to those seen with the CFMA. However, proponents of the new legislation argue that the GENIUS Act includes measures aimed at regulating the crypto market and mitigating risks.
Elizabeth Warren's criticism and that of other opponents to the GENIUS Act underline the need for thorough consideration of the law's impact on the economy and financial regulation in the U.S. Questions regarding proper management and citizen protection remain pertinent.
