Senator Elizabeth Warren has raised new concerns regarding the GENIUS Act, which is set for discussion in the Senate. Her worries relate to potential risks and loopholes in this bill aimed at stablecoin regulation.
Senator Warren's Warnings About Loopholes
On June 16, Senator Warren criticized the GENIUS Act in a statement, claiming that a significant loophole exists within the bill. She warned that this could allow large companies and tech giants to issue their own private currencies disguised as stablecoins.
Warren expressed concerns that this could give companies too much power and allow them to track user activities. She added that the costs might fall on taxpayers if such stablecoins were to fail.
Supporters Claim the Bill Includes Safeguards
Some experts responded to Warren's concerns, suggesting her views may not reflect the content of the bill. Supporters of the GENIUS Act argue that it already includes strict rules to prevent misuse.
According to reports, the bill prohibits big tech companies from directly launching stablecoins and includes rigorous requirements. Any company wishing to offer a stablecoin must maintain full reserves, conduct monthly audits, and comply with strict anti-money laundering regulations.
Expectations for Senate Voting
The final vote on the GENIUS Act is scheduled for 4:30 PM today. If approved, it will be sent to the House of Representatives for further review. Despite some objections, many experts believe the GENIUS Act will pass in the Senate.
Nate Geraci, president of The ETF Store, highlighted that the bill enjoys bipartisan support. Furthermore, more lawmakers and industry leaders see stablecoin regulation as a necessary step for the future of digital finance.
As the Senate prepares to vote on the GENIUS Act, the debate over its risks and benefits continues. Key concerns revolve around corporate control and the need for regulation, emphasizing the significance of this issue for the future of financial technologies.
