Senator Elizabeth Warren has expressed serious concerns regarding the recently passed GENIUS Act, which creates a legal framework for stablecoins in the US.
Critique of the GENIUS Act
Elizabeth Warren harshly criticized the GENIUS Act, signed by US President Donald Trump. The senator accused the crypto industry of writing the law for itself and warned of possible threats to the country's financial stability. 'When Washington runs on industry, only a handful of people get rich, and the rest of the American people pay the price,' Warren stated.
Parallels to the 2008 Financial Crisis
Warren compared the GENIUS Act to the Commodity Futures Modernization Act of 2000, which she believes contributed to the 2008 financial crisis due to the lack of adequate regulation of over-the-counter derivatives. 'We've seen this movie before: When an industry writes laws to suit itself, it ends in disaster,' she noted.
Accusations Against Trump and Industry Lobbying
The senator also condemned Trump for his personal involvement in cryptocurrencies, claiming he 'turned the White House into a crypto ATM.' 'Trump launched a memecoin and a stablecoin that have already made him hundreds of millions,' Warren said. She also pointed out that the crypto industry is spending record amounts on lobbying, comparing it to periods of heaviest banking pressure on Congress.
Thus, Elizabeth Warren expresses serious concerns about the implications of the GENIUS Act for the US financial system, emphasizing the need for stricter cryptocurrency regulation.
