The GENIUS Act, a proposed bill to regulate payment stablecoins, has become a topic of significant debate. Senator Elizabeth Warren expresses concerns that billionaires might exploit the system.
What Is the GENIUS Act?
The GENIUS Act is a proposed U.S. Senate bill aiming to establish a federal framework for payment stablecoins. It includes:
* Rules for issuance and transparency * Reserve requirements for stablecoin providers * Clear oversight roles for regulators.
The bill recently cleared a vote and is now set for discussion in the Senate, where several amendments are expected.
Warren’s Warning: “Billionaires Could Track Your Spending”
Senator Elizabeth Warren issued a serious warning on X (formerly Twitter):
"If Congress doesn’t fix the GENIUS Act, billionaires like Elon Musk and Jeff Bezos could launch stablecoins that track your purchases, exploit your data, and squeeze out competitors."
This raises a key issue: if tech giants gain control over both stablecoin issuance and the platforms they operate on, it could lead to a dangerous data monopoly.
Regulatory Politics and Stablecoins
Senator Warren also warned about another risk: bailouts. If corporate stablecoins crash, taxpayers could be held responsible.
Amid the debates, former President Donald Trump is linked to a controversial stablecoin project World Liberty Financial (WLF), launched in 2024.
WLF has raised over $550 million and issued a USD1 stablecoin backed by U.S. Treasuries and cash equivalents. Critics express concerns regarding possible conflicts of interest.
The GENIUS Act continues to evolve as it heads toward a Senate vote. The outcome will significantly impact the future of stablecoins in the U.S. and the potential power tech giants may hold over them.
