Senator Elizabeth Warren has raised serious concerns over the GENIUS Act which may allow major corporations like Amazon and Walmart to issue their own stablecoins.
Issues with GENIUS Act
The GENIUS Act, formally known as the 'Guiding and Establishing National Innovation for U.S. Stablecoins Act', recently cleared a significant hurdle in the Senate with a 68-30 cloture vote and is now heading for a final vote. Warren argues that this legislation could open a loophole for large corporations to issue stablecoins without strong oversight.
Elizabeth Warren's Opinion
Elizabeth Warren warns of potential consequences if the bill is not amended. In a post on X, she stated: 'If Congress doesn’t fix the GENIUS Act, billionaires could launch stablecoins that track your purchases, exploit your data, and squeeze out competitors.' Warren also expressed concerns that these ventures might later demand taxpayer-funded bailouts if they fail.
Discussion and Reactions
The debate surrounding the GENIUS Act has sparked public criticism. Crypto attorney John Deaton pointed out Warren's previous support for a government-backed CBDC, saying, 'So if it’s the government tracking you, it’s okay?' Meanwhile, some argue that corporate stablecoins could improve financial access and break banking monopolies.
The situation with the GENIUS Act highlights the struggle between innovation, privacy, and corporate influence in the rapidly evolving digital currency space, and future developments will be crucial in shaping the landscape.
