Democratic Senator Elizabeth Warren has sharply criticized the recently passed GENIUS Act, which establishes a legal framework for stablecoins in the U.S. Warren expressed confidence that the new cryptocurrency law poses a threat to the country’s financial stability, and its passage is a result of the crypto industry’s influence over the government.
This is reported by Business • Media
Concerns About Stablecoin Regulation
Warren emphasized that the GENIUS Act was crafted “at the behest” of cryptocurrency companies, which she believes could lead to dangerous consequences for the U.S. economy. She drew parallels with the Commodity Futures Modernization Act of 2000, which, according to the senator, contributed to the 2008 financial crisis due to a lack of proper oversight over over-the-counter derivatives.
“When Washington works for the industry, only a handful of people get rich, while the rest of Americans pay the price,” Warren stated.
While the senator acknowledges the importance of transparent cryptocurrency regulation, she stressed that laws should be enacted in the interest of the public, not individual market players. In her view, advancing a regulatory framework for stablecoins without proper oversight could create an illusion of safety, threatening a repeat of past crisis scenarios.
Criticism of Trump’s Actions and the Influence of the Crypto Industry
Warren also accused President Donald Trump of contributing to financial instability through his support of the cryptocurrency sector. She claims that the president’s administration dismantled the Justice Department’s unit combating crypto crime and weakened oversight from the SEC, creating additional risks for the economy.
The senator highlighted that the launch of the TRUMP meme coin based on Solana and the World Liberty Financial stablecoin in 2025 has piqued the interest of banks and major retailers. In June, there was a distribution of USD1 stablecoins for WLFI token holders on the World Liberty Financial platform. Warren has repeatedly emphasized that the president’s personal interest in cryptocurrencies could pose another threat to the U.S. financial system.
Economist Sergi Basco from the University of Barcelona also expressed concerns about the GENIUS Act, noting that the law creates a false sense of reliability for stablecoins. He stated that even the presence of backing in the form of U.S. Treasury bonds does not guarantee protection against collapse, as evidenced by the case of Silicon Valley Bank.
Warren pointed out that the crypto industry spends significant amounts on lobbying in Congress, surpassing even the banking sector’s activity in previous years.
“This is a city where money talks. But the way the industry pushed this law goes beyond anything we have seen before,” Warren emphasized.